# Build, Buy or Partner — AI Strategy, Ethics and Governance

Source: https://www.geekswithgeeks.com/en/ai-strategy-governance/biz-build-buy

> Compare options using total cost of ownership and strategic factors, not only price.

## Three routes

**Buy** a ready product: fastest and cheapest to start, but less control and recurring fees. **Build** on model APIs and your own components: more control and fit, but you own engineering, quality and risk. **Partner** with a vendor or consultancy for part of the work. Compare **total cost of ownership (TCO)** over several years, plus questions price cannot answer: Is this capability a source of **competitive advantage**? Who owns the **data** and improvements? How easily could you **switch vendors**? Does the supplier meet your **security and compliance** needs?

## Where the lines cross, run

I ran this with illustrative figures. Over 3 years buying (200,000 upfront + 700,000 a year) costs 2,300,000 against 2,700,000 for building (1,500,000 + 400,000 a year). But building becomes cheaper after about 4.33 years, so the answer depends on your time horizon.

```python
def tco(upfront, per_year, years=3):
    return upfront + per_year * years

print(tco(1_500_000, 400_000), tco(200_000, 700_000))      # build, buy over 3 years
crossover = (1_500_000 - 200_000) / (700_000 - 400_000)
print(round(crossover, 2))                                 # years until build is cheaper
```

Output:

```
2700000 2300000
4.33
```

## Plan the exit

Before signing, ask how you would export your data, prompts and evaluation sets if you switched suppliers. Keep your own evaluation set so you can compare vendors fairly.

**Quiz:** Why compare total cost of ownership over several years?

- [ ] It avoids all risk
- [ ] TCO is always the same for every option
- [ ] Years do not matter
- [x] Upfront price alone hides ongoing costs and can reverse the ranking

*Answer:* Upfront price alone hides ongoing costs and can reverse the ranking. A cheap start can be expensive over time, as the crossover calculation shows.