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Nobody knows what a used GPU cluster is worth

ciphertalk.substack.com

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Re: Nobody knows what a used GPU cluster is worth

#2
I half expect Nvidia to have buyback contacts like Ferrari with the larger customers to prevent a price crash when they all upgrade and to keep them scarce.

I hope not though, perhaps I can pick up a H100 in a few years if they get sold on the open market.

Re: Nobody knows what a used GPU cluster is worth

#6
post #2

I half expect Nvidia to have buyback contacts like Ferrari with the larger customers to prevent a price crash when they all upgrade and to keep them scarce. I hope not though, perhaps I can pick up a H100 in a few years if they get sold on the open market.

That should be illegal. Sounds like a very fraudulent business tactic.

Re: Nobody knows what a used GPU cluster is worth

#7
post #2

I half expect Nvidia to have buyback contacts like Ferrari with the larger customers to prevent a price crash when they all upgrade and to keep them scarce. I hope not though, perhaps I can pick up a H100 in a few years if they get sold on the open market.

Wouldn't that be crazy - a hobbyist market for H100s?

Maybe someone could start a business buying up and rehousing these.

Re: Nobody knows what a used GPU cluster is worth

#8
post #2

I half expect Nvidia to have buyback contacts like Ferrari with the larger customers to prevent a price crash when they all upgrade and to keep them scarce. I hope not though, perhaps I can pick up a H100 in a few years if they get sold on the open market.

That should be illegal. Sounds like a very fraudulent business tactic.

Fraudulent, I wouldn't say so. Anti-consumer or anti-competitive? Sounds like.

Re: Nobody knows what a used GPU cluster is worth

#9
post #5

Maybe this article has something useful to say but the painfully LLM-generated prose is too distracting to make it evident.

How do you know? I feel that it's just poorly edited. In my experience, AI is easier to read than this was.

Some sentences feel pretty AI like:

> These are not catastrophic events. They are the steady state.

> There is no GPU futures market, no standardized residual value curve, and no way to lock in a forward rental rate. The premium is is the price of underwriting in the dark.

The headings are also AI like, a lot of essays before usually did not have titled sections but now they do and they all feel like these.

In addition the diagrams themselves look pretty AI generated.

Re: Nobody knows what a used GPU cluster is worth

#10
post #2

I half expect Nvidia to have buyback contacts like Ferrari with the larger customers to prevent a price crash when they all upgrade and to keep them scarce. I hope not though, perhaps I can pick up a H100 in a few years if they get sold on the open market.

I worked at an org that had a substantial on-prem GPU datacenter. We transitioned to with a substantial negotiated discount rate, with part of the contract being we would sell them all of our hardware and not purchase any more.
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