So where does the money go?
Three places:
- AWS/Google/Whoever-you're-renting-from obviously get a cut
- Inefficiencies in the process (there's lots of engineers and DB administrators and technicians and and and people who have to get paid in the middle.)
- Thirdly, and this is what most surprised me, NVIDIA takes a big cut. Apparently the 1080Ti and similar cards are consumer only, whilst datacenters & cloud providers have to buy their Tesla line of cards, with corresponding B-to-B support and price tag (3k-8k per card). [1]
So, given these three money-gobbling middlemen, it does seem to kinda make sense to shell out 3.000$ for your own machine, if you are serious about ML.
Some small additional upsides are that you get a blazing fast personal PC and can probably run Crysis 3 on it.
[1]https://www.cnbc.com/2017/12/27/nvidia-limits-data-center-us...