CapEx vs OpEx

I would bet this is a capex/opex thing.

Isn't this basically converting capex to opex?

Compare Capex. That's a better indicator of long term spending.

There is no need to re-capitalise. It’s all opex if you want account for it accordingly.

I think you mean opex and not capex here.

That's not capital in the sense of durable assets to be depreciated. That's an operational expense.

It's a play on op-ex vs cap-ex

Might be an accounting scam^H^H^H^H trick to book the costs as an operating expense vs a capital expenditure. In general capital expenditures have to be planned carefully, held on the books for years, and show a return on investment. Perhaps an accountant can provide more detail.

This is accountant math with capex vs opex. I don't know how but they manage to convince companies that their saving money by spending 10 times as much.

Because you might need 20,000 of those "servers" immediately, and not have the up front capital to for an investment like that. And maybe it doesn't work out and you just needed those servers for 2yrs vs $your_depreciation rate