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A chatbot’s VPS needs depend entirely on where the brain lives: an external API or a model on your own server.

Two ways to run a chatbot

  • API-driven — the bot is thin middleware; 1 GB is plenty.
  • Self-hosted LLM — you need real RAM to load the model.

The pick depends on the model

For API-driven bots and RAG pipelines, RackNerd’s 1 GB plan at $21.99/yr runs the bot, a vector database, and a small API comfortably. For a locally hosted 7B model, jump to Hostinger’s KVM 2 (8 GB, ~$8.99/mo).

A simple API bot

pip install python-telegram-bot openai
  • Cache responses so common questions don’t re-hit the API.
  • Store embeddings in a local vector DB like Chroma or pgvector.
  • Guard against prompt injection if the bot reads external content.

Bottom line: thin API bots are cheap (1 GB); local models are RAM-bound (8 GB for a quantized 7B). Pick based on where inference runs.

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