drunkrigatoni

🦔 H100 GPUs that cost $40,000 new are now selling for around $6,000 on eBay, an 85% drop. The math on why is straightforward: it costs about 11x as much to run an H100 for inference as a B300. Anyone running H100s needs to charge dramatically more than competitors on newer hardware. Upgrading isn't simple either. At a $50,000 price tag for a B200, it takes about 33 months to break even on the upgrade from an H100. And the B300s are already making B200s less attractive. My Take I've been covering the depreciation problem in AI infrastructure for a while now. Companies are booking these GPUs on five to six year depreciation schedules when Nvidia releases new generations every two years. Michael Burry flagged Big Tech lengthening depreciation timelines as suspicious because it hides the real losses. A hedge fund manager I wrote about found that industry insiders estimate actual component lifespans at 3-10 years, but the economics don't work at any of those numbers. The hyperscalers are sitting on hundreds of thousands of GPUs that lose value every time Nvidia announces something new. David McWilliams called them "digital lettuce" because they go stale while you're still installing them. The difference between what the books say these assets are worth and what you could actually sell them for is enormous. At some point that gap has to be reconciled. H100s selling for 85% off on eBay is a preview of the writedowns coming to earnings reports. Hedgie🤗

LeBron James – ‘09/10 Dunk reel Have you ever seen someone move like this?

Mayor Adams, donning a newsboy hat, replies “cigar and a single malt scotch” over n over in response to my questions. He has less than 10 hours left in office