The students who are really interested in AI will buy desktop PC anyway. And the fact that they can use the same GPU for model training and for playing Diablo IV makes the whole investment easier to justify.
If you start having physical space guarantees, then the calculus changes...
"The break-even point for a desktop vs a cloud instance at 15% utilization (you use the cloud instance 15% of time during the day), would be about 300 days ($2,311 vs $2,270):"
And that was written before the current GPU crunch and assumes availability in the cloud, which currently is not a given at all.
[1] https://timdettmers.com/2023/01/30/which-gpu-for-deep-learni...