AI in hardware · October 2026 · A 30 minute read

Agents at
the edge.

Running agents on devices and appliances. When owning AI hardware beats renting cloud APIs, how to size it, and what it takes to run agents on infrastructure you control.

For CIOs, platform leads, heads of AI and CFOs.

The short version.

  • The argumentTraining is a short burst. Inference runs every day, so inference is the hardware worth owning.
  • The meterAgents read far more than they write, and loops multiply it. Anthropic measured about 4 times the tokens of chat for an agent and about 15 times for a multi-agent system.
  • The testOwn when the work is steady, an open-weight model is good enough, and the price you would otherwise pay is high. Rent when it is bursty, small, or needs a frontier model.
  • The mathA $750K appliance costs about $23K a month to own, at four years and 12% a year to run. It has to replace more than that in rent.
  • The sizeMemory sets what fits, bandwidth sets how fast, and context length is what fills the memory.
  • The workTwelve jobs sit between a GPU and an agent. An appliance takes most of them off your plate.
  • The startMeasure two weeks of tokens, find the baseload, and size one box against it.

The five parts

Five parts, from the bill to the box.

01

Part 1

The daily bill

Why inference, not training, is the cost you pay every day.

02

Part 2

Rent or own

The math, the break-even, and where each side wins.

03

Part 3

Size it

Memory, bandwidth and context, with a sizing sketch.

04

Part 4

Run it

Twelve jobs between a GPU and an agent, and questions for vendors.

05

Part 5

The reference

Optimus as a reference architecture, and a 30 day pilot.

Deloitte, 2026 TMT Predictions

Inference is becoming the bill.

Deloitte predicts that running models will take about two thirds of AI compute in 2026, up from one in three in 2023. It expects most of it to stay in data centers.

2/3Of AI compute in 2026, predicted

Deloitte, Technology, Media and Telecommunications Predictions 2026, November 2025. A prediction, not a measurement. Here the edge means infrastructure you control.

The daily bill

Agents multiply the meter.

An agent reads its whole context at every step and loops until the job is done. Anthropic measured agents at about 4 times the tokens of chat, and multi-agent systems at about 15 times.

Source is Anthropic Engineering, June 2025.

The daily bill

Every step re-reads the whole story.

In a 20 step run, an agent can read 555,000 tokens to write 10,000. Caching softens the bill, but the hardware still has to hold the context.

Illustrative arithmetic, not a measurement. A 4,000 token start, then 2,000 tokens of tool results and 500 of output added at each step.

Deloitte, Tech Trends 2026

Prices fell 280 times and the bill still rose.

Deloitte’s reading is simple. Usage grew faster than the price fell, so cheaper tokens did not make a cheaper bill.

280xFall in the cost of inference over two years

Deloitte, Tech Trends 2026, The AI infrastructure reckoning. The shape of the spend line is illustrative.

Rent or own

Owning is a bet on steady volume.

Hardware is paid up front, and then the meter stops. Rent starts at zero and never stops. Which line wins depends on how much work you send.

Illustrative. An appliance at $750K up front plus $7.5K a month to run, against two levels of rent.

Five numbers decide it.

NumberWhy it mattersWhere to find it
Tokens a month
Volume sets the size of the rent bill
Provider usage reports, split by workflow and hour
Price you would pay
A small-tier model costs a fraction of a frontier one
Your contract, with caching applied
Utilization
An idle box costs the same as a busy one
Hourly token logs against rated capacity
Price and life
Capital is spread over the useful life
The quote, with four years as a planning default
Cost to run
Power, space, support and the people who tend it
About 12% of the price a year as a planning default

Three studies, three answers.

SourceWhat it foundRead it as
Deloitte, Tech Trends 2026
On-premises can win once cloud costs reach 60% to 70% of the cost of an equivalent system, for steady high-volume work
A rule of thumb from an advisory firm
Lenovo Press, 2026
Payback in under six months at high utilization, and up to 8 times lower cost per token than comparable cloud
A vendor study with favorable assumptions
Carnegie Mellon, 2025
Break-even in months for small models, about 2 years for medium ones and about 5 for large ones. Worth it at 50 million tokens a month or more, or under residency rules
An academic model at 2025 prices

The calculator

Rent or own, with your numbers.

The defaults describe an Optimus Mini. Change anything, including the price and the rated speed.

The verdict

Owning is cheaper by 40%

Saves about $15,625 a month.

$38,750Rent a month
$23,125Own a month

Rent, per million output tokens$15.50

Own, per million output tokens$9.25

Break-even volume, one unit1.5B a month

Break-even utilization7.7%

Units needed1

Own assumes four years and 12% of the price a year to run. Rent uses published rate cards.

The math

The price you compare against is the whole story.

At 30% utilization an Optimus Mini costs about $4 for each million output tokens it writes. That is 95% below frontier-tier rent, and about five times above small-tier rent.

Our math, illustrative. Mini at $750K, rated 7,500 output tokens a second, four year life, 12% a year to run. Rent at published rate cards, October 2026, with 5 tokens read for each token written and half of the reads cached.

Break-even depends on the tier you replace.

If you would otherwise rentRent per million output tokensA Mini breaks even at
Frontier tier
$77.50
1.5% of rated capacity
Top tier
$31.00
3.8% of rated capacity
Mid tier
$15.50
7.7% of rated capacity
Small tier
$0.78
Never, it would need 153%

Where renting wins, and where owning wins.

Rent whenOwn when
Volume
It is light, spiky or still unknown
It is heavy and steady
Model
You need a frontier model
An open-weight model is good enough
Price
A small tier will do
You would otherwise pay mid or top-tier rates
Data
It may leave your walls
It must stay inside, or latency matters
Cost shape
You want no capital and fast change
You want a predictable monthly cost
People
No one can run hardware
You have a platform team, or an appliance that removes the work

The pattern

Own the baseload. Rent the peaks.

Power utilities do not build plants for the hottest hour. They own the steady load and buy the spikes. Inference has the same daily shape.

Illustrative demand curve. The shares shown are computed from the curve.

Size it

Memory bandwidth sets the speed limit.

Every token a model writes needs its active weights read from memory. Speed is roughly bandwidth divided by the bytes read, and real systems reach a quarter to a third of that ceiling. Batching shares each read across many users.

Measured speeds as reported by LMSYS through Spheron, October 2026, for gpt-oss-20b. About 1.9 GB is read per token. Bandwidths are vendor specifications.

Four numbers size an appliance.

NumberWhat it setsRule of thumb
Concurrent sessions
Memory for context, and shared throughput
Count busy agents, not employees
Context per session
Cache memory, the usual surprise
Memory grows with every token held
Model and precision
Memory for weights
Parameters times bytes for each parameter
Per-user speed
How many sessions share the bandwidth
About 15 tokens a second reads as fluent

The sizing sketch

A sizing sketch.

Memory is the first gate. Pick a model, a context and a number of sessions.

Weights use 8-bit values for the Llama models and 4-bit for gpt-oss-120b. Cache sizes come from each model’s published layer and head counts, and are upper bounds. Ninety percent of memory is treated as usable.

Memory needed

607 GB

88% of it is the context cache.

Model weights70.0 GB

Context cache537 GB

One 96 GB workstation GPUNeeds 7.0 times

A 128 GB desktop applianceNeeds 5.3 times

An Optimus Mini, 768 GBFits

96 GB GPUs needed8

Memory is the first gate. Throughput comes second, and depends on bandwidth and how many sessions share it.

Where devices, workstations and appliances fit.

TierMemory and bandwidthRuns wellBest for
AI PC or phone
A few GB to tens of GB, shared
Models of a few billion parameters for one user
Private drafting and local help
Desktop appliance
128 GB at 273 GB/s
A 100B-class mixture of experts model for a handful of users
A team pilot
Workstation GPU
96 GB at 1,792 GB/s
One 70B to 120B model, fast for a few users
A department
Rack appliance
768 GB across eight GPUs, in the Mini
Several models and hundreds of sessions
An enterprise function
Cloud API
Elastic
Frontier models and sudden peaks
Peaks and hard tasks

Size it

What agents ask that chat does not.

LONG CONTEXT

Memory fills with history

Agents re-read what they have done, so context rather than weights becomes the large number.

CONCURRENCY

Size for sessions

Many agents wake at once, so count busy agents rather than employees.

STEADY LOAD

Loops run overnight

Work that never sleeps keeps owned capacity busy, which is what makes it pay.

PREDICTABLE SPEED

Variation compounds

A ten step loop multiplies delay, so the slow tail matters as much as the average.

MEASURE FIRST

Log your own mix before you buy. Averages hide the peak.

Our synthesis, with the token multiples from Anthropic Engineering, June 2025.

Run it

Twelve jobs sit between a GPU and an agent.

Buying GPUs is the easy part. Integrating and operating them is the work. An appliance packages the stack so one bundle and one update path carry it.

Our list of the jobs. Every team will weigh them differently.

Run it

What an appliance takes off your plate.

INTEGRATION

Parts arrive tested together

Drivers, runtime, model serving and networking ship as one tested whole.

OPERATIONS

One update path

Lyzr says Optimus ships signed updates, so patching follows a single path.

SECURITY

Hardening is built in

Lyzr lists secure boot, encrypted drives and no external model calls.

WHAT STAYS WITH YOU

Power, space, network access, the data connections, and the people who own the agents.

Lyzr Optimus site, October 2026. Vendor claims, not independently verified here.

Ten questions for any appliance vendor, one to five.

AskWhy it matters
1 What concurrency is rated, at what context length and per-user speed?
Ratings move with all three
2 How was the rating measured, and can we repeat it in a pilot?
A claim you cannot reproduce is only a quote
3 Which models ship, and how are they refreshed?
Open-weight models improve every few months
4 Can we bring and fine-tune our own models?
Ownership means more than renting a box
5 What happens when an update fails?
Rollback is the real test of an update path

Ten questions for any appliance vendor, six to ten.

AskWhy it matters
6 What leaves the box, and when?
Air-gapped should mean no outbound calls
7 Who has remote access, and how is it logged?
Support access is a door as well
8 What does year two cost, with support and refresh?
The quote is the first bill, not the last
9 How do we grow from one box to two?
Scaling is where integration costs return
10 What is the exit plan if the vendor stops?
You should be able to keep running

The reference

Optimus as a reference architecture.

Lyzr describes Optimus as an on-prem agent factory. Hardware, models and the agent platform arrive as one machine.

  • HARDWAREEight GPUs, 768 GB, two 100 GbE ports.
  • SECURITYSecure boot, encrypted drives, signed updates.
  • MODELSgpt-oss-120b, Mistral Small 4, Gemma 4, or yours.
  • SOFTWAREStudio, Search, admin console, Open Cowork.

Lyzr Optimus site and sovereign AI page, October 2026. Vendor claims, not verified here.

The Optimus lineup, as Lyzr lists it.

TierWhat Lyzr statesList price
Personal
A desktop workstation, air-gapped, with open-source models loaded and fine-tuning supported
From about $10K, as reported
Executive
Sized between the desktop and the Mini. Ask Lyzr for its ratings
$25K
Micro
Sized between the desktop and the Mini. Ask Lyzr for its ratings
$150K
Mini
Eight GPUs and 768 GB, rated for 500 simultaneous conversations at 15 tokens a second or more
$750K
Max
An enterprise rack, up to 10,000 concurrent users and over a million agents, per Lyzr
About $1M, as reported

The reference

What else runs on the appliance.

AGENT PLATFORM

Agents and governance

Agentic OS and Control Plane, with Agent Studio, Architect and Cognis memory.

OPEN COWORK

A workspace for everyone

A governed AI coworker for every employee, on models you run.

OPENFINETUNER

Models tuned on your data

Fine-tune open-weight models on your own data, and keep the result.

OPENCONTROLLER

One view of every agent

Policies, audit trails and spend limits for agents on or off the box.

THE RENTED SIDE

Lyzr Nitro adds production modules on AWS, Azure and Google Cloud for the work you rent.

Lyzr sovereign AI page and pricing page, October 2026. Vendor descriptions, not independently verified here.

Where Optimus fits, and where to look elsewhere.

Optimus fits whenLook elsewhere when
Volume
It is steady and high
It is light or bursty
Models
Open-weight models are good enough
You need a frontier model for every task
Data
It must stay inside your walls
It can leave
Team
You want a bundle rather than parts
You already run a GPU fleet well
Timing
You can plan around Q4 2026 delivery
You need capacity this quarter

A 30 day pilot before you buy.

WeekWhat you doWhat you leave with
1
Log tokens by hour and by workflow
Your real demand curve
2
Find the baseload and price it at three tiers
A break-even range
3
Run the target workflow on an open-weight model
A quality test against what you rent
4
Size memory and throughput, and get two quotes
A sized proposal for the CFO

About Lyzr

The full-stack agent infrastructure platform for enterprises and governments that want to own their intelligence.

3,000+
Organizations building on Lyzr
40+
Enterprise customers
50+
Implementation partners
100,000+
Agent builders

Founded in New York in 2023. Agent Studio, Architect, Opencontroller, Open Cowork, Openfinetuner, Optimus and Madison cover building, governing, running and owning agents. Deploys in your AWS, Azure or GCP account, a dedicated tenant, SaaS, on bare metal, fully air-gapped, or on the Optimus appliance.

Backed by Rocketship.vc, BGV, Accenture Ventures, GFT, the Partnership Fund for New York City and Plug and Play.

Your next step

Own the baseload. Rent the peaks.

Measure two weeks of tokens, find the baseload, then size one appliance against it. Optimus pre-orders open in Q4 2026.

01 MeasureLog tokens by hour and workflow.
02 SizeFind the baseload and size to it.
03 ProvePilot for 30 days against your bill.
Book a working session