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Please, I want the fire sale to come so I can buy a H100 for $50 and tinker with it. AI stuff is cool to play with and I’m not giving my data to the next Zuck to sell off when they go bust. Let the coders and computer nerd have they toys to home lab with!

My bloated dragon form bedded down on a vast heap of GPUs deep beneath a random Amazon warhouse.

Companies should not be large enough where they can just make decisions like this and not implode. I think that might just not be great for society.

More likely scenario, IMHO, is that they get dirt cheap for hobbyists to put in home labs and maybe NVidia starts cranking out graphics cards again in an attempt to recoup costs on pre-purchased TSMC wafer starts. Maybe GPU prices get good again…?

The biggest problem is that they aren't usable for gaming because they have minimal raster units. Someone tried with a Hopper datacenter part and managed to get it to display but it performed worse than a iGPU from the mid 2010s

Most likely they would part them out. If this whole thing comes crashing down, there will be shops (and maybe NVIDIA themselves) that would be willing to chop up these boards for PARTS (RAM/GPU/etc) and create something that works. Really depends on how far they crash.

They'll still be useful but for AI business models that actually make sense. European companies will probably gobble them up on a nice discount.

2028 might be optimistic too. Somehow these companies are able to stay irrational longer than the shorts can stay solvent

The thing is, you can't even use them for anything else! The bubble is going to crash and there's going to be literal tons of wasted materials

And they're not going to simply eat the loss. That's why Amazon has been pushing A.I. in everything and will continue to do so until it *becomes* profitable, no matter who or how many they have to trample in the process. I cut all ties with Amazon over a year ago, and I have never looked back.

Rumors are it will be out on PC in Q1 of next year. Crossing my fingers this is true. I'll slog it out on my 3080ti. Looks good enough to me.

The line in the screenshot is the story: room for racks, no power to turn them on. Running models myself taught me the same thing at small scale. The chip is rarely the bottleneck. A GPU waiting on a pallet isn't capacity, it's inventory losing value every time a new generation ships.

This is the kind of thing people need spelled out for them. The math at play here has never really added up. Have to feel that without Ed harping on this we may not get this kind of reporting.

... And by the time they have hardware to install them *in*, they're going to have been obsoleted by whatever new development in tech has come up in the interim.

That's what boggles my mind. Like even with 'Net360' or whatever crazy shit NVIDIA is offering: why are people still buying GPUs? Eventually that train's gonna end, right?

Those GPUs will be obsolete before they ever get used! They're total junk after 36 months!

Ed is rarely wrong, but he's always early.

An important piece of the story, I suspect. Ordinary people with unique ideas for developing local AI models / cheap replacements for over-priced or over-monetized technology (subscriptions, surveillance, forced dependence) are a threat to current predatory business strategies.

Heads should literally roll for this.

At least copper plumbing is relatively easy to reuse!

To the value of $36B a year?

They just want to help a young upstart company in nvidia

Paperclip maximizer but make it an investor class

I for one am extremely glad that we are living in a system that allocates capital rationally to serve the needs of everyday people, unlike some command economy or whatnot.

www.windowscentral.com/artificial-i...

No. Amazon is not benefitting from this in the slightest

2025 the RTX PRO 6000 Blackwell was 8k. Now it's 16k. This isnt difficult to figure out why, and it sure isnt AI demand.

Gamers rise up

Real, "We need you to go back to work because we're Vertically Integrated so we're our own landlords and tenants, and you need to risk death and come back to work," energy.

We need to start stealing pallets of these fuckers in big, intricate heists, and spin up a cottage industry of jailbreaking/repackaging them to some state that makes them usable for the average joe.

I’m never going to be able to buy a GPU again, am I?

I’m waiting for a really crazy revelation like the boxes actually being empty and Nvidia hasn’t actually shipped anything to these companies at all.

once again manifesting the future where you have the scoop of literal pictures of the piles of GPUs at one of these warehouses

This feels like buying all the meals you will ever eat today, then just slow crawling your way there

everyone is obsessed with the silicon but nobody is talking about the power availability. you can have all the h100s in the world but if you can't plug them in they're just very expensive paperweights.

As Ed has noted, Nvidia probably forced them to do this by saying they'd be denied future GPU allocations if they didn't lock in purchases now and then Amazons own greed took over and did the rest

This is totally consistent with the idea that they're all spending/building so much because they *know* there's not room for all of them to win. It's not a technology race; it's a "force competitors to drop out" race. Hoarding resources is very much part of that strategy. Capitalism at its worst.

And they go obsolete about every 3 years. When the ndw model doubles previous ones. This is a modern tulip bulb scheme lololol these chips drop value faster than a lambo driven off the lot.

plug them in they then have to depreciate those assets... so are the GPUs actually worth MORE sitting in a warehouse now? Are the hyperscale's ACTUALY depreciating the unused GPUs? Or are they marking them at "fair market value"? And what happens the moment their not rewarded for increased CAPEX?

It's like the warehouse full of artifacts at the end of Raiders of the Lost Ark but it's all full of useless shit or soon to be useless shit.

It's very funny watching Nvidea wringing money out of Amazon, just the way Amazon treats it's own small suppliers.

ok so everything is expensive, they made all these junk gpu that cant be recycled, and there is no end in sight regardless so who knows when production on usable memory and such will ever be back to normal. cool cool depressing cool.

This is what used to be called "cornering the market".

Is that a popping sound I hear off in the distance? 🫧💥

The gap between buying GPUs and putting them to work seems crucial here. Is there any public disclosure that separates installed capacity from equipment still waiting for power? That would help distinguish a temporary delay from a lasting drag on returns.

Corey Doctorow has been 100% correct in advising foreign governments to wait on AI and buy up the pieces left over on the cheap when all of this blows up.

Look forward to these being given away in breakfast cereal when the bubble bursts

Which I assume heavily contributes to the cost of the new computer I need to buy?

American version of Soviet collapse where instead of warehouses full of endless weapons it’s warehouses full of computer chips being sold on the cheap to any sketchy buyer that shows up

Just convert your old pc to Linux and it will live forever like a vampire

That's part of the point. www.windowscentral.com/artificial-i...

"During the railroad boom following the Civil War and the late 1990’s dot.com financial bubble, infrastructure was built that was not used until well after the booms that went bust."

Is this bad?🤔

Millions huh.

Bubble, meet pin

This is just a sign that corporations arent being taxed enough.

The longer that computer parts sit idle, the more they are worth, right?

By the way, Microsoft seems to be hiring(Or advertising for positions) for their three data centers that they are building in Brazil, but I didn't find updates for something like eight months. No one seems to be talking about them.

We are one bad quarter in Nvidia from those billions of dollars being completely wiped

In my lifetime I've clicked on many Business Insider articles. I have yet to get past the firewall. You are all powerful.

Like a juggler juggling bowling balls, they can't possible keep them in the air forever, and eventually sheer exhaustion will mean they all come crashing down.

Something something pitchforks something

This looks like another round of that ever popular show, Too Big To Fail? 💰

Shocked.

Well that’s annoying

If that makes sense Then again, this might just be red meat for the haters and this part of it wouldn't necessarily phase someone who believes the hype, but documenting the waste is worth it

Or is it that GPUs don't have a very long shelf life so it's like buying a ton of apples before you have the facilities built to bake the pies?

Pop yer bastard, pop.

Ram is still £150 but hey at least there's acres of gpus for no reason somewhere

bubble's gonna pop, and it's gonna be loud

listen these shovels are gonna make a bunch of money when someone pays you to fill holes that they dug

By the time they’re ready to be used they’ll be outclassed by something vastly more energy efficient. Fucking dumbasses.

assholes, everywhere