[thworp]

A toy example: NeoCloud Inc builds a new datacenter full of the new H800 GPUs. It rents out a rack of them for $10/minute while paying $6/minute for electricity, interest, loan repayment, rent and staff.

Two years later, H900 is released for a similar price but it performs twice as many TFlOps/Watt. Now any datacenter using H900 can offer the same performance as NeoCloud Inc at $5/month, taking all their customers.

[all costs reduced to $/minute to make a point]

[fooker]

It really depends on how long `NeoCloud` takes to recoup their capital expenditure on the H800s.

Current estimates are about 1.5-2 years, which not-so-suspiciously coincides with your toy example.