AI startups face a critical decision: continue paying for cloud compute or invest in their own GPU infrastructure. However, the true cost of owning hardware extends far beyond the silicon itself, encompassing expenses like high-density power, cooling, colocation fees, and rapid depreciation due to architectural obsolescence – Blackwell (B200) recently doubled compute density. Ultimately, owning hardware only becomes financially advantageous with consistently high utilization rates, highlighting the benefits of a hybrid approach combining local workstations with scalable cloud resources.
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