Surely, at that budgetary scale, buying/building your own infrastructure would be cheaper than renting it? This is the same economic calculation large animation studios have to make WRT render farms (which also use similar types of hardware).
Almost no one has that kind of money to invest up front (especially not an hypothetical open source organization like discussed here). Even if somehow one had that money available, for this to be more economic than renting you need to have it running at full capacity at all times for years, not many research groups can come up with many interesting projects at a scale large enough to utilize that kind of cluster efficiently.
So buying something like that is only conceivable for huge research groups with hundreds of researchers and tons of cash: Google Brain, DeepMind, Microsoft and probably Facebook. Even OpenAI wasn't able to afford it directly...
Hypothetical open source organization is not hypothetical: https://www.eleuther.ai/home
However, the compute constraints are correct. We plan on using TFRC's TPUs in order to replicate GPT-2 (with a few changes to support scaling to GPT-3 and beyond as well as the larger context length). With success on a GPT-2 model we hope to garner enough interest to get more compute to train a full-sized GPT-3 model. After that, it's 1T or bust.
A trillion parameters? Damn.
Again, I have a feeling that big-budget render farms have trod this path before.