The cloud business model is to use scale and customer ownership to crush hardware margins to dust. They’re also building their own accelerators to try to cut Nvidia out altogether.
Just took a random server: https://instances.vantage.sh/aws/ec2/m5d.8xlarge?duration=mo... - to get a decent price on it you need to commit to three years at $570 per month(no storage or bandwidth included). Over the course of 3 years that's $20520 for a server that's ~10K to buy outright, and even with colo costs over the same time frame you'll spend a lot less, so not exactly crushing those margins to dust.
Cloud bills can be written off in the month in which they are paid; while buying hardware has to be depreciated over years.