[brookst]

Sure. But if that fully depreciates, $1100/year GPU produces $20k of economic benefit, would you decommission it as long as there is demand?

[malfist]

If my data center sells a pflop at $5 because of our electricity use and the data center a state over with newer GPUs sells it at $2.50/pflop, it doesn't matter how much economic benefit it generates, my customers are all going to the data center a state over.

[voakbasda]

I want to see math on how a single GPU will pull down that much revenue, because that seems like a dubious outcome.

[brookst]

Fair, I was hand waving to make a point. “If it generates more than $1100 + (resale price * WACC) + opportunity cost from physical space/etc” would have been more accurate.

But the point is — you don’t decommission profit generators just because a competitor has a lower cost structure. You run things until it is more profitable for you to decommission them.

[malfist]

That all depends on if you're running your own hardware (unlikely) or renting.