GPU ECONOMICS
GPU Cloud vs Buy: The 2025 TCO Analysis
At $2.50/hour for H100 cloud, you hit break-even at 9 months vs purchasing. But utilization, depreciation, and opportunity cost change the math.
Calculate Your TCO →Quick Comparison: Cloud vs Buy vs Lease
| Factor | ☁️ Cloud | 💰 Purchase | 📋 Lease |
|---|---|---|---|
| Upfront Cost | $0 | $25,000+ | 1-3 months |
| Monthly Cost (H100) | ~$1,800/mo | $0 (owned) | ~$1,850/mo |
| Depreciation Risk | None | High | Lessor bears |
| Flexibility | Scale instantly | Fixed capacity | Term commitment |
| Best For | <65% utilization | >65% for 2+ years | Predictable workloads |
Decision Framework
Choose Cloud If:
- • Utilization will be <65%
- • You need to scale up/down frequently
- • Project duration is under 9 months
- • Capital preservation is priority
Choose Purchase If:
- • Expected utilization is >65%
- • Workload duration is 2+ years
- • You can absorb depreciation risk
- • You want 100% margin on resale
Choose Lease If:
- • Predictable, steady workload
- • Want depreciation off balance sheet
- • 1-3 year commitment is acceptable
- • Need to upgrade at end of term
Run the Numbers for Your Workload
Enter your expected utilization and duration to find the optimal strategy.
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