Definitely not an expert, but I get the impression that this point is a lot higher that most people assume it is.
K8s makes little sense unless you run on bare-metal. Once you jump to vms you are injecting another abstraction layer and take on a herculean level of ops without understanding what you're getting into.
I'm not sure where the check points are now, but typical points where cost jumps are desktop -> server socket, single socket -> two sockets, two sockets -> four sockets, four -> eight sockets. AFAIK, AMD EPYC isn't offered at more than two sockets, and going to four sockets used to be possible off the shelf but very expensive, and eight sockets was very expensive if off the shelf or very expensive because custom engineering. Sometimes ram costs go way up for the highest density too.
Also, deploying a new build on VMs is extremely manual compared to k8s, unless again you set up some sort of home brew rube Goldberg machine to auto deploy. It's just way better to use k8s in tandem with a simple GA workflow.