A $20k local AI rig may need about 27 months to pay off
A $20,000 is not free after purchase. Long runs keep using electricity, and that cost can materially change the math. The example assumes a serious machine with two high-end GPUs, enough , and enough VRAM to run a useful model at a usable speed.
It also assumes about $200 per month in extra power costs from regular heavy use. The comparison is a hosted that costs $200 per month and has no upfront hardware cost. Under those , the becomes cheaper only around month 27.
Before then, the local rig is worse on pure cost, even if the upfront purchase makes the ongoing cost feel smaller.
Key points
- A still has ongoing electricity costs.
- The example uses a $20,000 machine and about $200 per month in extra power.
- A $200 per month hosted stays cheaper for about 27 months.
- Local hardware may feel cheaper after purchase, but the upfront cost still matters.
- Agent builders should compare total cost, including power and hardware, not only token fees.