GPUs are going on-prem: owning beats blended cloud at 33% utilization and neoclouds at 66%
AccBalanced · x · 2026-10-14
@sonnetxu argues GPUs are starting to move on-prem: with AI demand becoming persistent, owning GPUs increasingly resembles CPU economics, where steady workloads make ownership cheaper than renting. An attached chart (DGX H100 8-GPU server, N. Virginia colo, Uptime Institute Jan 2025) quantifies it: $250/hr at 8% utilization, beating hyperscaler average ($98/hr) at 22%, blended public cloud ($66/hr) at 33%, and neocloud average ($34/hr) at 66%. If you know you'll use them, owning beats renting forever.
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