1. Executive Summary (Abstract)
The enterprise AI landscape is currently paralyzed by a Sovereignty Trilemma: the inability to balance Privacy, Latency, and Cost within public cloud ecosystems. While 78% of regulated LATAM enterprises require local AI deployments to meet compliance (CNBV/GDPR).
Zyrabit-SLM breaks this cycle. This paper details a Local-First architecture using optimized Small Language Models (<14B parameters) that achieve an 81% reduction in OPEX and a 9x improvement in P99 latency by moving inference from the cloud to the user’s controlled infrastructure.