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CAPEX
CAPEX is capital expenditure — money spent on long-term assets like hardware and buildings.
Definition
CAPEX (Capital Expenditure) is money spent on acquiring, maintaining, or improving long-term assets — buildings, hardware, vehicles. For datacenters and AI infrastructure: (1) Building construction, (2) GPU servers ($30K-$40K each), (3) Cooling and power infrastructure, (4) Networking equipment. CAPEX is depreciated over time (3-5 years for IT equipment). Harch Corp makes the CAPEX investment in GPU infrastructure so customers don't have to — customers pay OPEX (operating expense) through hourly GPU cloud billing.
Related Keywords
capexcapital expenditurehardware investmentdatacenter investment
Related Terms
TCO (Total Cost of Ownership)
TCO is the complete cost of owning and operating an asset over its lifetime.
OPEX
OPEX is operating expenditure — ongoing costs for running a business, like cloud subscriptions.
GPU Cloud
GPU cloud is a cloud computing service that provides access to graphics processing units (GPUs) on-demand for AI, ML, and HPC workloads.