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Harnessing AI Efficiency without the Data Risk: Privately Hosted AI Chatbots

By Nick Miller on

DeepSeek’s recent explosion into the AI arena sparked a mix of astonishment and apprehension.

On the one hand, its DeepSeek-r1 Large Language Model (LLM) usurped OpenAI’s ChatGPT-4o as the best reasoning model in the market. The model challenged existing ideas around compute requirements and introduced a lighter, more efficient reinforcement learning training technique. Better yet, it is free.

On the other hand, DeepSeek’s hosting policies raised significant data privacy concerns. Governments in Australia, the US, Italy, Taiwan, and South Korea have banned DeepSeek on government devices, citing concerns about its data collection and retention practices and security risks linked to Chinese ownership of its servers.

In a highly contested AI battle, it is difficult to see how appropriate use of user’s data trumps model development when outsourcing hosting to third-party LLM providers. This misalignment has sparked at a timely reminder of the urgent need for an alternative for privacy conscious businesses.

Enter stage right: Bach’s privately hosted DeepSeek chatbot

We’ve combined the deepseek-r1 model— a lightweight, open source, market leading reasoning model—with Bach’s best-in-class hosting environment to deliver a powerful, privately hosted AI chatbot ready for business use.

What is a privately hosted Chatbot?

A privately hosted AI chatbot runs on servers or infrastructure fully controlled by the user or business.

Privately hosted chatbots use the same underlying LLMs and chat interfaces as household AI models like OpenAI’s ChatGPT or Google’s Gemini. The difference is that all data interactions remain within a business’ private cloud and are not shared with any third-party service.

For businesses handling sensitive data, ChatGPT and other third-party chatbots were never an option. Private hosting changes that—allowing full control over all data processed by the model. The result is a myriad of high value business use cases and efficiency gains for companies handling confidential data.

How can I use a privately hosted AI chatbot in my business?

A private AI chatbot has a range of high value use cases in driving business efficiency. Think of these chatbots as ultra fast learning, low maintenance, and cost effective junior hires for your business.

Private hosting allows companies to provide the chatbot with all of the necessary context and details without breaching client confidentiality. The result? Sharp, relevant insights from a chatbot that can now support business critical functions.

Here are just a few high value use cases for privacy conscious businesses:

  • Decision justification – Get an objective opinion to help you make better, more informed decisions.
  • Document Analysis – Upload key documents to generate summaries, extract key takeaways, list action items, outline next steps, and even provide alternative perspectives.
  • Document Generation – Upload a request for quote (RFQ) or past proposals, and let the chatbot draft a new RFQ for your team to review.

How does Bach make private hosting simple, safe, and secure?

Despite the clear benefits of privately hosted AI chatbots, many businesses struggle with the technical complexity and resource demands of setting them up.

Using Bach’s One-Click Apps, time-poor businesses can benefit in several ways:

  • Rapidly deploy secure, business-ready AI solutions
  • Expand reach and deliver higher-quality services
  • Meet privacy and compliance requirements with ease

One-Click Apps work by providing on demand application templates. When a user wants to deploy an app, Bach’s backend will provision the necessary resources (GPU, Database, etc.) to ensure the application runs as expected.

Bach’s hosting environment comes preconfigured with auto scaling (for one or one million users), built in backups and redundancy, and observability tools for performance monitoring. As we like to think of it, Bach provides everything you need to run a high performing, private AI application without the complexity.

💡 Bonus Tip – How to write effective prompts with reasoning models:

To get the most out of your chatbot, craft prompts with clear objectives, guidelines, and context. A well structured prompt helps the LLM generate precise, useful responses. Make sure to include these key components:

  • Goal – Define your end objective for the prompt.
  • Return Format – Specify how you want the chatbot to structure its response.
  • Warnings – Highlight any constraints or specific considerations.
  • Context Dump – Provide all relevant background information (go wild—it’s all in your private cloud!)
See an example here:

Goal: I want help identifying the key risks in our Service Level agreement template before taking the document to get professional legal advice

Return Format: Start with a high-level summary, then provide bullet points for each key risk area. For each risk, include a verbatim quote from the contract along with a recommendation on how to mitigate or improve it.

Warnings: Ensure the contract aligns with best practices for Service Level Agreements. Quotes must be verbatim, and recommendations should be practical and actionable.

Context Dump: I want you to ask as a legal expert and provide advice on this service level agreement is for a technology company providing management cloud hosting as a service. Our website is www.getbach.io. Our docs are www.getbach.io/docs. This document will be reviewed by our legal team, however, I would like key talking points for the meeting.

*Courtesy of Ben Hylak

Let’s Build the Future of Private AI—Together

The rise of DeepSeek has made one thing clear: businesses need AI that is both powerful and private. With Bach’s privately hosted DeepSeek chatbot, businesses can access one of the best reasoning models on the market, combined with enterprise level security, observability, and instant deployment—all without compromising on data privacy.

Whether you’re looking to streamline operations, automate workflows, or unlock deeper insights, a private AI chatbot can be the new hire your business needs.

Want to explore how your business could benefit from a privately hosted chatbot? We’d love to help. Contact us at hello@getbach.io.

About the author

Nick Miller

Nick is a Co-Founder of Bach, with experience in strategy, product and operations across multiple early-stage technology companies.