1️⃣ Overview of Project Vision
We are building a HIPAA-compliant AI-powered platform to serve law firms, enabling them to spin up single-instance Large Language Models (LLMs) inside Docker containers, powered by GPUs. Clients (law firms) will use a custom dashboard to upload documents that are securely transferred via SSH to our Docker environment, where they can chat with their documents. Once done, conversation transcripts are saved back to their own HIPAA-compliant server.
2️⃣ Starting Phase: Renting GPUs
2.1 Rationale
We start by renting GPUs to minimize initial capital outlay and risk, allowing us to scale as we acquire clients. Renting GPUs from providers like AWS or dedicated GPU hosting vendors offers:
- Flexibility to scale capacity up or down.
- No large upfront capital requirement.
- Access to latest hardware without maintenance concerns.
2.2 Costs of Renting
High-end GPU rentals (H100/A100 class) typically cost:
- $1.50 to $4.00 per hour per GPU.
- Full-time 24/7 use per GPU: ~$1,080 – $2,880/month.
- For 8 GPUs: ~$8,640 – $23,040/month in rental costs.
3️⃣ Dashboard & System Architecture
3.1 Central AWS Orchestration Server
- Hosts master dashboard & control software.
- Manages client onboarding, Docker/LLM instance orchestration.
- Handles GPU resource allocation, usage tracking, and billing.
3.2 Client AWS Server & Dashboard
- Each client has their own AWS environment with our dashboard deployed.
- Allows document upload, tracking, spinning up/shutting down LLM sessions.
3.3 Security & Compliance
- HIPAA-compliant encryption (at rest & in transit).
- Business Associate Agreements (BAA) signed on server spin-up.
- Audit logs, role-based permissions, encrypted backups.
4️⃣ AI Token Pricing Model
We charge clients based on usage via AI tokens:
- Token cost: $0.10 – $0.20 per token.
- Typical session: ~10,000 tokens → $1 – $2 per session.
- Target monthly revenue per client: $100 – $200 (depending on session volume).
5️⃣ Staffing & Support
5.1 Technician Needs
- Early phase: 5 technicians can handle 50-100 clients each (depending on automation).
- For 500 clients: ~5-10 technicians recommended.
5.2 Technician Cost
- Average salary:
$74,000/year ($6,200/month).
5.3 Scaling to 1,000 Clients
- Without automation: 10-20 technicians likely needed.
- With strong automation: 8-10 technicians could cover 1,000 clients.
6️⃣ Automation as Profit Lever
Automation investment is key to reducing technician load and maximizing profitability:
- Automate Docker orchestration, health monitoring, patching.
- Streamline client onboarding and server setup.
- Integrate detailed usage tracking and token billing.
7️⃣ Financial Model: Renting GPUs
| Metric | 500 Clients | 1,000 Clients |
|---|---|---|
| Monthly Revenue | $100,000 | $200,000 |
| Monthly GPU Cost | ~$20,000 | ~$40,000 |
| Technician Salaries | ~$31,000 | ~$62,000 |
| Other Infra | ~$30,000 | ~$50,000 |
| Total Cost | ~$81,000 | ~$152,000 |
| Profit | ~$19,000 | ~$48,000 |
8️⃣ Transition to Owned GPUs
8.1 Costs & ROI
- High-end GPUs cost $25,000 – $35,000 each.
- Colocation, power, maintenance: ~$300 – $700/month per GPU.
8.2 Savings & Breakeven
- Saving ~$1,500/month per GPU by owning vs renting.
- Breakeven in ~18-24 months on hardware investment.
8.3 Scaling Benefits
- After breakeven, almost all former rental costs convert to profit.
- Greater control over workload scheduling & compliance.
9️⃣ Capital & Phased Investment Strategy
9.1 Phase 1 (First $200,000)
- Build dashboard & orchestration software.
- Rent GPUs to serve initial 500 clients.
- Hire 5 technicians + partial automation team.
9.2 Phase 2 (Raise Additional Capital)
- Invest in automation → reduce staff scaling needs.
- Begin purchasing GPUs one by one → transition from rental.
9.3 Phase 3 (Long-Term)
- Target 1,000 clients.
- Complete shift to owned GPUs → maximize monthly profit margin.
Summary
- Project is feasible to start with ~$200,000 outlay.
- Critical success factors: fast client acquisition + automation investment.
- Long-term profitability increases substantially by moving from GPU rental to ownership.
- Breakeven on hardware purchases typically in 18-24 months with high utilization.
- Full system designed to maintain HIPAA compliance at all stages.
Appendix: Key Figures & Estimates
- GPU Rental Cost per Month per Unit: $1,080 – $2,880.
- Owned GPU Monthly Hosting Cost per Unit: $300 – $700.
- Technician Monthly Salary: ~$6,200.
- Technician to Client Ratio: 1 per 50-100 clients (without automation).
- Break-even on GPU purchase: ~18-24 months.
NEXT: draft project plans, milestone charts, and technical specifications to present to technician team.