What is the difference between CapEx and OpEx?

Q: What is the difference between CapEx and OpEx?

> * **CapEx (Capital Expenditure)**: Upfront investment in physical infrastructure (servers, cooling, building data centers). You own the assets, but it requires massive capital upfront and has static capacity limits. * **OpEx (Operational Expenditure)**: Pay-as-you-go operational costs. You pay only for resources consumed, allowing you to scale up or down dynamically based on demand with no upfront overhead.

💬Answer

CapEx (Capital Expenditure): Upfront investment in physical infrastructure (servers, cooling, building data centers). You own the assets, but it requires massive capital upfront and has static capacity limits.
OpEx (Operational Expenditure): Pay-as-you-go operational costs. You pay only for resources consumed, allowing you to scale up or down dynamically based on demand with no upfront overhead.

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What is the difference between CapEx and OpEx?

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