The appropriate depreciation rate for NVIDIA GPUs has consistently ranked as one of the biggest unknowns of the ongoing AI build out, with proponents continuing to argue in favor of a longer shelf life, while detractors contend that a 3-year useful life estimate is most appropriate. The latest hourly rental rate figures for NVIDIA GPUs, however, appear to bolster the point of view espoused by the proponents of longer useful life estimates, which bodes well for the income statements of AI hyperscalers. Older NVIDIA GPUs, such as the A100s and H100s, command a higher rental rate today than what they […]
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