[0]: https://www.theatlantic.com/technology/archive/2014/07/the-d...
[1]: https://aws.amazon.com/blogs/publicsector/announcing-the-new...
You go to google cloud and order 10k preemptible instances per datacenter. That solves half of your problem. Then the same onto SoftLayer and AWS and revise monthly who is the cheapest one. It's not very difficult.
Contrary to you, I think that most places are not ready to accept that kind of contract. I have a friend who evaluated to move one of his compute grid to DigitalOcean and he was contacted to stop doing that, their servers are not meant to run at 100% CPU use all the time.
Regarding cloud being much higher cost: indeed. Anecdotal evidence; I know of a big reference customer who said they would consider the move to cloud a success if total cost didn't go up more than 2x. A few years in, that hadn't happened yet...
Twice as much would be a huge savings. In the cloud, I can give you 20k cores in one hour and I can give you 100k cores in two hours, after the initial investment to open multiple regions and networks backbones. The price is known in advance and the investment can be cancelled anytime.
Obtaining the same 20k cores from a colo will be a hassle. Months of negotiations with nothing being done. I'd expect any sane provider to bail if trying to discuss 100k cores, it's too much upfront investment. It would take years to get half of it, the project is long abandoned before anything is delivered and everyone who worked on it has left.
Granted, if you need 1M+ cores, you're going to be dealing with humans most places (including AWS) to get the best deal possible, and that also means the cost differences can change fairly substantially (e.g. the instances I know of that are in "ask us" territory are not paying anywhere near published prices)
That said 1M cores is not that much. Depending on your needs it's as little as "just" 500 racks. Plenty of managed providers will be happy to provide customized service to e.g. design and/or manage a setup for something that size.