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Preheat the oven to 175°C.
Heat a non-stick pan over medium heat and cook the bacon until lightly golden and the fat has rendered. Add the onion and cook until softened and lightly caramelised. Remove from the pan, leaving a little of the bacon fat behind.
Place the grated potatoes into a clean tea towel and wring out as much liquid as possible. Transfer to a large bowl and season generously with salt.
Add 1 tbsp of olive oil and half the butter to the pan. Once melted, spread around half of the potato mixture into the base of the pan and press down firmly.
Scatter over the bacon and onion mixture, followed by the grated Gruyère. Top with the remaining potato mixture and press down again to compact everything tucking in the sides.
Cook over medium heat for 10 minutes, allowing the underside to become golden and crispy.
Place a large plate over the pan and carefully flip the rosti onto the plate. Add remaining olive oil to the pan if needed, then slide the rosti back into the pan uncooked-side down. Tuck a few knobs of butter around the edges and cook for a further 10 minutes.
Transfer the pan to the oven, remove the handle and bake for 10-15 minutes, or until the centre is fully cooked and the outside is golden and crisp.
Finish with sour cream, fresh chives and a drizzle of chilli oil, if using.