Luxor's Mike San Miguel breaks down GPU economics: full AI-factory contracts run $4.20-$4.50/GPU-hour for B300s vs $8-$9 on rental indices.
The counterintuitive play: if you have capital for smaller node deployments, you'll likely beat the returns of buying an entire factory and locking into an offtake deal with a cloud provider. Scale paradox in action—bulk infrastructure deals compress margins harder than boutique deployments.
Translation: owning 10-50 nodes and managing your own contracts > signing a hyperscale factory deal where cloud providers extract most of the arbitrage. The rental market premium exists because flexibility and operational control have pricing power that factory-scale commitments sacrifice.
The counterintuitive play: if you have capital for smaller node deployments, you'll likely beat the returns of buying an entire factory and locking into an offtake deal with a cloud provider. Scale paradox in action—bulk infrastructure deals compress margins harder than boutique deployments.
Translation: owning 10-50 nodes and managing your own contracts > signing a hyperscale factory deal where cloud providers extract most of the arbitrage. The rental market premium exists because flexibility and operational control have pricing power that factory-scale commitments sacrifice.