alt Hacker NewsOld GPUs today are selling and renting for more than they were new which suggests the typical depreciation pattern isn’t holding.
There’s a risk that likely will happen that once demand is met capacity will overshoot significantly. However, when will that occur is very up in the air. Everyone is training every larger models and there’s more AI usage than ever
There’s still a cost to underestimating asset depreciation from an accounting perspective. Imagine being left holding the balance sheet when you budgeted for X amount of depreciation but the demand drops significantly more than you expect during the next fiscal year. I guess my point is that artificially constrained supply is not a free lunch.