Jensen Huang Says a 22% Rent Jump Proves Old Nvidia Chips Keep Earning
Nvidia CEO Jensen Huang says rising AI chip rental costs show that older {hardware} retains incomes, after charges for a three-year-old chip climbed 22% in a month.
The chip is the H100, the coaching processor behind the primary wave of generative AI. It now rents for $3.28 an hour. Huang calls that sturdiness. The longer file complicates the declare.
Older AI Chip Rental Prices Jump 22% in a Month
Index information circulated on X places the hourly charge at $3.28, a acquire of roughly 22% over the previous month. Huang shared the chart and described Nvidia compute as fungible, durable, and revenue-generating.
The rebound cuts in opposition to commonplace accounting. Hyperscalers write down graphics processing items (GPUs) over roughly 5 to 6 years. Michael Burry argues the actual helpful life runs shorter, and he expanded his Nvidia short in late August.
Why One Month Does Not Settle the Depreciation Debate
History cuts each methods right here. On-demand capability for a similar chip as soon as value $7 to $8 an hour at massive cloud suppliers, and early charges ran larger nonetheless. Against that base, $3.28 stays a steep markdown.
Supply additionally explains a part of the transfer. Newer Blackwell programs keep reserved for the largest consumers, so older clusters maintain filling inference workloads. Tight energy and reminiscence maintain the entire market costly.
Then there may be who pays the lease. CoreWeave, a cloud agency that buys Nvidia chips and rents them out, carried $35 billion of debt on the finish of June. Nvidia, in the meantime, agreed to lease again unused capability from such companions. Critics rely that among the many off-balance-sheet AI deals that flatter demand.
Nvidia posted record second-quarter revenue of $96.2 billion in August, and the inventory rose greater than 4% after the report. Rents for ageing silicon give Huang a recent speaking level. A second month of good points would flip that time into a development.
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