A proprietary LLM is owned by a vendor who offers access via SaaS APIs but does not release weights or training data.
Pros and Cons
Risk Mitigation
- Evaluate vendor SLAs and data-use policies.
- Plan for model regressions after silent updates.
- Negotiate pricing tiers for predictable spend.
Current Trends (2025)
- Feature flags allow opt-in to model version updates.
- Confidential compute enclaves reassure on data privacy.
- Some vendors offer weight escrow for continuity insurance.
Implementation Tips
- Version API calls with
model=vendor-model@2025-06-15
. - Fallback to cheaper tier when latency budget breached.
- Track token usage client-side to detect billing errors.