AI Feature Cost Per User at Scale: On-Device vs Cloud for 100K, 500K, and 1M DAU Apps 2026

At 100,000 daily active users, cloud AI costs your enterprise $1.095 million per year for a standard text feature. At 500,000 DAU, that is $5.475 million per year. At 1 million DAU, $10.95 million per year. The on-device build premium is $60,000-$80,000. The break-even is measured in weeks, not years. Key findings At 1M DAU with 5 text AI queries per user per day, cloud AI costs $1.095 million per month. On-device build premium is $80,000 one-time. Break-even is less than 3 days of cloud spend.