ANVE: the private AI office, on the record. See what that means

ANVE

Private AI glossary · updated 2026-10-16

Capex vs opex
Buying AI hardware once, or paying for an AI service every month.

Short answer. Capital expenditure (capex) is money spent acquiring an asset that will be used over more than one period, such as a server; operating expenditure (opex) is the recurring cost of running the organisation, such as subscriptions, rent and maintenance. In accounting, IAS 16 treats property, plant and equipment as assets when they are held for use and expected to be used during more than one period, and their cost is spread over their useful life through depreciation. Indian government buyers make the choice formally: rule 149 of the General Financial Rules, 2017 asks ministries to plan their GeM purchases on an “OPEX” or “CAPEX” model when preparing budget estimates. For office AI, buying an appliance is capex and cloud AI seats are opex. This is general information, not tax or accounting advice.

01

The difference in one table

PointCapex: buyOpex: subscribe
ExampleAn AI appliance or server bought outrightPer-seat or per-token AI subscriptions
Cash flowA large payment upfrontSmaller payments every month or year
AccountingRecorded as an asset and depreciated over its useful lifeExpensed in the period it is incurred
BudgetCapital budget, often with separate approvalOperating budget
OwnershipYou own the hardware; software use depends on its licenceA right to use the service while you pay
When payment stopsThe hardware is still yoursAccess stops
02

An example in numbers

A 20-person office weighing the Microsoft 365 Copilot Business add-on, at ₹1,745 per user per month on Microsoft’s India page (paid yearly, before GST), would pay ₹4,18,800 a year as opex. An appliance is a one-time capex outlay, with electricity and maintenance as opex on top. ANVE Office’s indicative launch price is ₹4,49,000 ex-GST for up to 25 named users, and the final price is not announced.

ANVE Office is also offered as rent-to-own, directly from ANVE with no third-party lender: ₹13,999 a month × 48 months, ex-GST, care included (ANVE Care: updates and support), and the box is yours at the end. Both prices are indicative; the final price and the rent-to-own agreement are confirmed in writing before you order.

Every ANVE order includes a perpetual licence for the software delivered with the unit, and there is no remote kill switch, as the /security page sets out. The point is the shape of the spending, not which is cheaper: work out both over the same years.

03

What procurement rules say

  • GFR rule 149(vi): ministries and departments plan GeM procurement on an OPEX or CAPEX model at the budget estimate stage, and project an annual procurement plan on GeM within 30 days of budget approval.
  • The Manual for Procurement of Goods notes alternatives to owning equipment outright: hiring, hire-purchase, leasing, or acquiring the functionality as a service.
  • The same manual asks buyers to weigh operating, maintenance and disposal costs over the life of capital equipment, not just the purchase price.
04

Questions for your accountant

  • What useful life and depreciation method apply to the hardware in our books?
  • Can we claim input tax credit on the GST for the purchase or the subscription?
  • Does our capital budget or board approval limit favour one model this year?
  • Are any upfront fees for a subscription treated as an asset?
05

Questions people ask

Is an AI subscription capex or opex?
Usually opex, because it is a recurring payment for a service rather than an asset you own. Your accountant decides the treatment in your books.
Is buying an AI server capex?
Hardware held for use over more than one period generally meets the definition of property, plant and equipment in IAS 16. Your accountant confirms the treatment for your organisation.
Why do government offices care about capex and opex?
They are separate budget heads. GFR rule 149(vi) asks departments to choose an OPEX or CAPEX model for GeM purchases when preparing budget estimates.
Is capex cheaper over time?
It can be when the asset is used for several years by many people, because the cost does not grow with each user. It is not automatically cheaper once maintenance, power and replacement are counted.
06

What is not real yet

No sealed ANVE unit exists; every image of the appliance on this site is a labelled render. The software runs today on a development machine. No customers yet, no certifications, no delivery date, and the final price is not announced.

Reservations are ₹999 in India or US$12 elsewhere, refundable in full until you confirm an order in writing (terms). Offices that cannot use cloud AI can apply to be one of ten design partners.