The short answer
Choose cloud AI if your work involves no sensitive data and you only need a chat assistant. Choose on-premise AI if you handle client, financial or confidential information, want an assistant that knows your business, and prefer owning to renting. A hybrid such as a Space Rig gives you a private AI in your office plus masked access to cloud AI when you want it.
Side by side
| On-premise (Space Rigs) | Cloud AI subscription | |
|---|---|---|
| Where data is stored | On your Space Rig | Provider's servers |
| Fully private option | Yes, Private mode | No, every request goes to the cloud |
| Strongest cloud models | Yes, Secure (masked) and Wise modes | Yes |
| Knows your documents and email | Built in | Partly, depending on plan and setup |
| Cost model | Hardware purchase + Claude subscription | Monthly fee per user |
| Who owns the hardware | You | The provider |
Privacy
With a cloud subscription, every prompt and file is processed on the provider's servers under its policies. On-premise, your knowledge base is stored on your own machine and Private mode answers on it. When a cloud model helps (Secure mode), names, email addresses, phone numbers and other identifying details are masked on the Space Rig first.
Knowing your business
A general chatbot knows the internet, not your price list. A Space Rig reads your documents and email into a private knowledge base, drafts replies the way you write, and remembers every customer.
Cost
Cloud AI is priced per user, per month, so the bill grows with your team. A Space Rig is a one-time hardware purchase ($11,500 USD for the Mars Space Rig) plus an Anthropic Claude subscription, used only in Secure and Wise modes.
When cloud AI is the better choice
If you never handle sensitive data, need only occasional chat help, or want to start in five minutes, a cloud subscription is simpler. Many businesses use both.
Frequently asked questions
Is on-premise AI better than ChatGPT?
For confidential work, yes: data stays on hardware you own and Private mode sends nothing out. For general questions, the largest cloud models are excellent; a Space Rig lets you use them too, with identifying details masked.
Is on-premise AI cheaper than ChatGPT Enterprise?
Cloud AI costs a monthly fee per user, so the total grows with headcount and time. An on-premise Space Rig is a one-time $11,500 USD hardware purchase plus a Claude subscription. Which is cheaper depends on team size and how long you use it.