You could cut your MongoDB costs by 100% by not using it ;)
> without sacrificing performance or reliability.
You're using a single server in a single datacenter. MongoDB Atlas is deployed to VMs on 2-3 AZs. You don't have close to the same reliability. (I'm also curious why their M40 instance costs $1000, when the Pricing Calculator (https://www.mongodb.com/pricing) says M40 is $760/month? Was it the extra storage?)
> We're building Prosopo to be resilient to outages, such as the recent massive AWS outage, so we use many different cloud providers
This means you're going to have multiple outages, AND incur more cross-internet costs. How does going to Hetzner make you more resilient to outages? You have one server in one datacenter. Intelligent, robust design at one provider (like AWS) is way more resilient, and intra-zone transfer is cheaper than going out to the cloud ($0.02/GB vs $0.08/GB). You do not have a centralized or single point of failure design with AWS. They're not dummies; plenty of their services are operated independently per region. But they do expect you to use their infrastructure intelligently to avoid creating a single point of failure. (For example, during the AWS outage, my company was in us-east-1, and we never had any issues, because we didn't depend on calling AWS APIs to continue operating. Things already running continue to run.)
I get it; these "we cut bare costs by moving away from the cloud" posts are catnip for HN. But they usually don't make sense. There's only a few circumstances where you really have to transfer out a lot of traffic, or need very large storage, where cloud pricing is just too much of a premium. The whole point of using the cloud is to use it as a competitive advantage. Giving yourself an extra role (sysadmin) in addition to your day job (developer, data scientist, etc) and more maintenance tasks (installing, upgrading, patching, troubleshooting, getting on-call, etc) with lower reliability and fewer services, isn't an advantage.