Running costs & reality in Australia

v1.3.0 · Last verified: 25 September 2026

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Private AI is not free. The bill shifts from monthly SaaS to hardware, power, heat, and your time. This page helps you sanity-check ROI without spreadsheet cosplay.

Cost buckets

Bucket What to include Notes (AU)
Hardware GPU / Mac, RAM, NVMe, PSU, UPS, networking Amortise over 24–36 months for hobby; 36–48 for business pilots
Electricity GPU + CPU load hours × kWh rate High-end GPUs can draw hundreds of watts under load — check your tariff
Cooling / environment Air-con uplift in summer Especially QLD / humid NSW offices
Bandwidth Model downloads, updates One-time spikes; plan NBN evening usage
People time Setup, patching, user support Often the largest business cost

Simple electricity sketch

Example (illustrative only): a system averaging 300 W under inference for 3 hours/day uses about 0.3 × 3 = 0.9 kWh/day ≈ 27 kWh/month. At $0.30/kWh that is roughly $8/month for compute power alone — before idle draw and cooling. Scale the watts and hours to your box.

Rough formula: (kW draw × hours/day × days × $/kWh) + (hardware ÷ months)

Vs cloud seats

Compare like-for-like: number of active users, sensitivity of data, and whether you need frontier quality. A roughly $20–$30/user/month cloud seat (ChatGPT, Claude, Gemini, Copilot, or Grok team plans — check current vendor pricing) can beat a ~$4,000 workstation class if three people rarely paste sensitive data. The same seat can look expensive if ten people hammer private corpora all day and policy forbids public tools. The $0.30/kWh figure above is an orientation — use your own bill. People-time is still usually the largest business cost. Hobby hardware: think 24–36 months. Business pilots: 36–48.

When private wins financially

When cloud wins financially