[AYBABTME]

I don't get how this is unique to GPU clusters. As a general rule, underwriters are not qualified to operate and maintain the assets they underwrite loans for. That's why houses, cars, equipment, ... go at auction at a fraction of their value. And why lenders have insurance.

[roadbuster]

> I don't get how this is unique to GPU clusters

It isn't, and you're right. This is just a long-winded article by someone who thinks they've come across a deep, crucial insight.

I witnessed a bank foreclosure stemming from large, unpaid loans to a lumber mill. The bank absolutely didn't want to take possession of the operation, but had no choice when the founder decided to call it a day.

The bank had no idea what to do with finished lumber sitting in the drying ovens, let alone the entirety of mill infrastructure itself. After struggling to find a buyer, they hired the founder as a consultant to handle liquidation. The same would happen with a repossessed datacentre.

[danielmarkbruce]

In many cases they could literally do it but just don't have the scale - a small team of folks can finance a lot of real estate development for example. They can't do all the work of the development itself even if capable. It's just too much work.

[venussnatch]

Or... auctions are a terrible way to buy big expensive risky purchases.

Auction prices account for that risk, you don't get to do all of the verification you do for normal purchases.