Earlier quoted context omitted.
They seriously can't buy a graphics card and slap it in the PCIe slot?
You're neglecting management costs. IT teams don't buy hardware with corporate credit cards, they have to work through pre-existing requisition processes that properly budget for the hardware, make sure support contracts are in place, etc. You have to migrate whatever workload off the server where you installed the GPU (politically problematic since Murphy promises you that your users will be connecting to the server…
Capex => Opex has a name. It's called "a loan". So let's model cloud usage as a loan. Let's assume you want, for an employee, a machine learning rig and you set depreciation on 2 years. Let's also assume that the article is correct about the ballpark figures, somewhere around $1400/month for renting, and $3000 for the machine.
And let's ignore the difference in power usage, extra space, bandwidth, ... (which is going to be 2 digit dollars at the very most anyway, since you need all that for the employee in the first place)
So how much interest does cloud charge for this Capex => Opex change ? Well 33600/30000.5 or 613.5% per year. Pretty much every bank on the planet will offer very low credit score companies 30% loans, even 10% is very realistic.
There are no words ... Just give the man his bloody machine. Hell, give him 5, 4 just in case 3 fail, and 1 for Crysis just to be a "nice" guy (you're not really being so nice: you're saving money) and you still come out ahead of the cloud.
We both know why this doesn't happen, the real reason: you don't trust your employees. Letting this employee have that machine would immediately cause a jealousy fight within the company, and cause a major problem. That's of course why the GP comment is right: leave this bloody nightmare of a company, today.