hard★ EssentialCoreWeaveLambdaOpenAI

Should we buy or rent 1,000 H100s for the next two years?

Compare ownership with the actual rental contract, using explicit cash flows, resale assumptions and the hours that can really be avoided.

Updated Oct 2026 · Learn how AI infrastructure works through explanations, worked examples and diagrams, then practise applying it to interview questions.

Compare ownership with the actual rental contract, using explicit cash flows, resale assumptions and the hours that can really be avoided.

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Work through the numbers

Change the assumptions in a free calculator, then explain what the result establishes and what still needs measurement.

The concepts behind this question

Use these concept explanations to review the ideas behind this question.

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🧮 Napkin Math & Capacity🔒 Premium

TCO: Buy vs RentBuying and renting GPU capacity have different cost and availability risks. Compare them over a stated lifetime and demand pattern, including idle time and operating costs.

Advanced

🧮 Napkin Math & Capacity🔒 Premium

Cost per Million TokensCost per million tokens connects fleet spending to useful output. Keep the time window, token definition and utilization assumptions consistent when comparing deployments.

Advanced

🧮 Napkin Math & Capacity🔒 Premium

Capacity Planning and UtilizationCapacity planning connects demand, useful throughput and acceptable waiting time. Serving and training need different models of bursts, job shape and spare capacity.

Foundational

🧭 Ownership & Judgment

Talking About Cost and Capacity with LeadershipA capacity discussion should connect technical measurements to cost, delivery dates and risk. Present the assumptions, feasible options and a recommendation, and distinguish committed capacity from actual consumption under the relevant contract.

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FEDITOR'S NOTE

Distinguish useful activity from billable reservation time. A committed rental cannot be discounted by utilization unless its contract permits that.

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