Own GPUs or API: the 2024 math
We ran the numbers for four clients at different volumes. The break-even point sits higher than people assume.
Four different clients asked essentially the same question that month: should we purchase our own GPU infrastructure or remain with cloud API services. We built detailed financial models and ran the full numbers for each client's specific usage pattern and business requirements.
With irregular and unpredictable usage patterns, a dedicated GPU sits idle most of the time while you continue paying for capacity. The break-even point requires sustained, predictable, consistent load across all weeks and all months throughout the year.
The load pattern that actually justifies owned infrastructure is almost always the overnight batch job kind. Daily volumes that remain reliably consistent in size, happening at the same time every day, running for predictable durations month after month.
Three of the four clients remained on API services because the total cost was lower and the operational burden was minimal. The fourth client had an enormous predictable daily batch job, built their own infrastructure and was absolutely right to do so.
The capital cost of purchase, the permanent on-call rotation burden, and the upgrade expenses only make financial sense if the machine runs hot and productive most of the time. That scenario is significantly rarer than many teams assume initially.
The honest and common answer remains: stay on APIs until utilization clearly demonstrates that change to owned infrastructure becomes necessary and cost-effective for the business.