That strikes me as being in the right ballpark, but it's going to be tough to swallow since that's the lowest level of granularity.
For most orgs you'd be left paying for a lot of excess capacity you couldn't immediately put to use as you migrate workloads in. I guess in ~4 years once you reach steady state and you're retiring / replacing these things it all works out, but if you're migrating from vmware or something else in a traditional blade/chassis world it's not like you can just wave a magic wand and move $500k worth of compute over to this thing at once.
If you're green fielding something, that's a lot of cash to sink in on compute you may not need for some time in the future. Never mind your DR site(s) also needing that much...
Or provide enough white glove after-sales support and written guarantees to peel away low end mainframe customers at a fraction of the price.
Given their management plane/API:
* https://docs.oxide.computer/api/guides/responses
the performance may be about the same, and CapEx as well (or maybe a little higher), but OpEx could be where you make it up in large(r)-scale operations.
And space efficiency is also not to be sneezed at: for some operations DCs/compute can be place anywhere because latency is that big of a deal, but in other places you need to be close to certain things (trading), and real estate can get expensive.
See pictures: https://pbs.twimg.com/media/FfT7MHoUoAE90QZ?format=jpg&name=...
https://oxide.computer/product/specifications
Then yeah, it's ridiculously expensive.
That said compared to competitors it's in the right ballpark, but I have no idea how companies manage to spend so much money for this stuff. I am the founder of my own tech startup and I remember when I was looking at storage solutions and building out computing clusters there were companies charging absolutely insane prices.
I literally just spent about a week of my own time studying and learning as much as I could about it on my own and ended up building out my own custom solution for about 20-25% of the price these other companies were charging. I remember hearing people trying to scare me out of it saying if I did my own solution I'd need to hire full time operations people, and I'd always have to worry about things breaking and maintenance or headaches and nightmares etc...
It's been over 10 years now and absolutely no headaches, no nightmares, and very very minimal maintenance is needed.