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Timothy Carter
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4/2/2025

Deploying Large Language Models in a Serverless Environment: Challenges and Solutions

Ah, serverless computing. That magical place where developers can scale infinitely, pay only for what they use, and never have to think about infrastructure again. At least, that’s the sales pitch. In reality, serverless is a fantastic option for lightweight, ephemeral workloads—not for a behemoth like a large language model (LLM) that devours CPU cycles and memory like a black hole.
 
Yet, here we are. Some bright minds have decided that serverless should also be the home for state-hungry, compute-thirsty, and ever-demanding LLMs. Maybe it’s curiosity. Maybe it’s an intense desire to see just how far cloud providers will let you push their free-tier limits before billing you into financial ruin. Either way, it’s a challenge, and if you’re attempting it, you need to understand why it’s a bit like trying to tow a semi-truck with a bicycle.
 

The Anatomy of a Serverless Nightmare (a.k.a. Why This Is Hard)

 

Cold Starts and Hot Tempers

 
One of the main selling points of serverless computing is that it scales down to zero when you’re not using it. That sounds great until you realize that every time you invoke your LLM-backed function after a period of inactivity, the cloud provider has to spin up a new instance, load your model, and get everything warmed up. This is known as a cold start, and it’s about as fun as waiting for a frozen pizza to bake when you’re starving.
 
For a lightweight function, cold starts can be tolerable—maybe a couple of hundred milliseconds. But when you’re trying to spin up an LLM that requires gigabytes of memory and significant compute power, cold starts can stretch into multiple seconds. That’s an eternity for real-time applications. Cloud providers have attempted to mitigate this with things like provisioned concurrency and function warming techniques, but let’s be honest: at that point, you might as well be running a dedicated server.
 

Statelessness vs. LLMs That Hoard Context Like a Dragon

 
Statelessness vs. LLMs
 
Serverless thrives on statelessness, meaning that each function invocation is supposed to be independent, ephemeral, and blissfully unaware of past interactions. LLMs, on the other hand, thrive on context. They need to track conversations, remember previous interactions, and maintain a coherent state across multiple invocations. This fundamental mismatch creates a problem that is only solvable through some fairly aggressive external storage solutions.
 
The common workaround is to offload context to a database, a vector store, or some other external persistence layer. This, of course, introduces latency, extra complexity, and the opportunity for thrilling new failure modes. Nothing like debugging an AI-powered chatbot that suddenly develops short-term amnesia because your context cache timed out.
 

Compute and Memory: When Serverless Says “No”

 

The Irony of “Limitless” Cloud Compute

 
Cloud providers love to market serverless as infinitely scalable, but that illusion shatters the moment you try to deploy a model that requires more than the paltry compute and memory limits they impose. AWS Lambda, for example, maxes out at 10GB of RAM and 15 minutes of execution time. Great for resizing images. Terrible for running a 175-billion-parameter transformer model.
 
At best, you’re left with two choices: aggressively optimize your model so it can squeeze into the available resources or offload inference to an external service that actually has the power to run it. Either way, it defeats the "just throw it on serverless" dream you started with.
 

The Latency Tax: When Every Millisecond Costs a Fortune

 
Even if you do manage to deploy an LLM in a serverless function, prepare to pay the latency tax. Every invocation requires your function to pull in the model weights, process the input, and send the output back. In a best-case scenario, you’re looking at multiple seconds per request. That’s assuming you’re not also dealing with cold starts, network overhead, and other delightful inefficiencies.
 
This is where optimization techniques like model quantization, ONNX runtime, and distillation come into play. You can slim your model down to a more reasonable size, but don’t expect miracles. At some point, you’ll realize that running an LLM on a serverless function is the equivalent of cramming a Formula 1 engine into a golf cart—it might work in theory, but it’s not going to be pretty.
 

Data Bottlenecks and Storage Drama

 

Where To Stash Your Gigantic Model?

 
One of the more amusing aspects of serverless is that function instances are designed to be ephemeral. This means that every single time your function is invoked, it starts with a fresh slate—no lingering model weights conveniently stored in memory, no disk cache, no shortcuts. If your model is large (and let’s be honest, it is), you have a delightful new problem: where do you keep it?
 
Most cloud providers allow you to store large files in object storage like AWS S3 or Google Cloud Storage, and you can pull them in as needed. But let’s do some quick math: If your model is 10GB and your function takes 5 seconds just to load it, that’s already a huge performance hit before it even starts processing requests. You could use a persistent storage solution like AWS EFS, but now you’re layering on even more complexity and cost.
 

API Gateways, WebSockets, and Other Traffic Jams

 
Once you’ve somehow managed to get your model running, the next challenge is getting data in and out efficiently. Standard API Gateway setups have strict limits on payload sizes, and handling real-time interactions over a stateless request/response model isn’t exactly ideal for an LLM.
 
Many engineers turn to WebSockets or event-driven architectures, which offer more flexibility but also introduce their own challenges in terms of maintaining connections, handling concurrency, and managing costs. You’re effectively reinventing the wheel at this point—just with more moving parts that can fail spectacularly.
 

Security, Costs, and Other Fun Surprises

 

Who Left the Backdoor Open?

 
Running an LLM serverlessly doesn’t just mean dealing with technical limitations—it also means worrying about security. AI models are already prone to adversarial attacks, prompt injection, and data leakage. Now add in the fun of serverless execution, where each function instance is essentially a black box that spins up and down at will.
 
Managing API keys, securing request payloads, and ensuring proper isolation between invocations becomes a full-time job. And let’s not even get started on the potential for supply chain attacks when you’re pulling dependencies from the wild west of open-source AI libraries.
 

The CFO’s Worst Nightmare—Cost Spirals

 
Theoretically, serverless should be cheaper because you only pay for what you use. In practice, when you’re dealing with LLMs, every second of execution time adds up fast. A single invocation might cost pennies, but multiply that by thousands of requests per hour, and suddenly your cloud bill looks like a high-stakes poker loss.
 
This is why many companies ultimately land on a hybrid approach—running lightweight inference on serverless functions and offloading heavier workloads to dedicated instances. Sure, it’s not as elegant as pure serverless, but at least it doesn’t bankrupt you in the process.
 

Winning the Serverless-Large-Model Battle

 

Hybrid Approaches That Actually Work

 
At the end of the day, most teams that deploy LLMs in a serverless environment end up using a hybrid model. They run lightweight tasks serverlessly but keep full-blown inference workloads on GPU-backed instances or managed AI services. This balances scalability with sanity.
 

Smarter Scaling and Deployment Hacks

 
The key to making serverless work (somewhat) for LLMs is aggressive optimization. This includes fine-tuning auto scaling strategies, using pre-warmed function instances, and experimenting with distillation techniques to trim the fat off your model.
 

Should You Even Bother?

 
If you absolutely must deploy an LLM on serverless, be prepared for pain. It’s possible—but just barely. Most likely, you’ll end up using a hybrid approach anyway, so do yourself a favor and start there. Unless, of course, you enjoy suffering. In that case, go right ahead and deploy a GPT-4-sized model on AWS Lambda. I’ll bring the popcorn.
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Author
Timothy Carter
Timothy Carter is the Chief Revenue Officer. Tim leads all revenue-generation activities for marketing and software development activities. He has helped to scale sales teams with the right mix of hustle and finesse. Based in Seattle, Washington, Tim enjoys spending time in Hawaii with family and playing disc golf.