GPU Economics — Buy, Rent, or Serverless: A Decision Framework for AI Compute Procurement

Key Points

• The aim is to evaluate various procurement models for AI compute resources, focusing on cost-effectiveness.
• Analyzed different models of GPU procurement including purchase, rental, and serverless options.
• Developed a decision framework to guide evaluation based on economics.
• Compared costs and benefits of each procurement strategy.
• Found that serverless options can be cost-effective for fluctuating workloads.
• Identified scenarios where buying GPUs provides long-term savings.
• Demonstrated that renting GPUs can be beneficial for short-term needs without commitment.