Unless you can keep your compute at 70% average utilization for 5 years - you will never save money purchasing your hardware compared to renting it.
Unless you can keep your compute at 70% average utilization for 5 years - you will never save money purchasing your hardware compared to renting it.
$3,000 is well under many "oopsie billsies" from cloud providers.
And that's outside of the whole "I own it" side of the conversation, where things like latency, control, flexibility, & privacy are all compelling reasons to be willing to spend slightly more.
I still run quite a number of LLM services locally on hardware I bought mid-covid (right around 3k for a dual RTX3090 + 124gb system ram machine).
It's not that much more than you'd spend if you're building a gaming machine anyways, and the nifty thing about hardware I own is that it usually doesn't stop working at the 5 year mark. I have desktops from pre-2008 still running in my basement. 5 year amortization might have the cloud win, but the cloud stops winning long before most hardware dies. Just be careful about watts.
Personally - I don't think pi clusters really make much sense. I love them individually for certain things, and with a management plane like k8s, they're useful little devices to have around. But I definitely wouldn't plan to get good performance from 10 of them in a box. Much better off spending roughly the same money for a single large machine unless you're intentionally trying to learn.
Like, if you buy that card it can still be processing things for you a decade from now.
Or you can get 3 months of rental time.
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And yes, there is definitely a point where renting makes more sense because the capital outlay becomes prohibitive, and you're not reasonably capable of consuming the full output of the hardware.
But the cloud is a huge cash cow for a reason... You're paying exorbitant prices to rent compared to the cost of ownership.