a16z's Alex Danco and Moses Sternstein on the bear case that GPUs would depreciate fast, what rental rates actually show, and why the data points to scarcity: Alex: "There is a whole case that people made on both sides of the argument that these things were assets that would depreciate on a schedule. And in the past 18 months, I think what we have learned is that all our assumptions were wrong." Moses: "GPU rental rates continue to go up. Even as token pricing comes down, you see more and…

a16z@a16z10h ago

Zooming out, GPUs are still renting ahead of a standard 6-year depreciation schedule Rental price vs. schedule: - H200: +143% - B200: +111% - RTX PRO 6000: +73% - H100: +54% - A100: +9% Most of the gap opened up after April, when token demand took off Charts of the Week: https://www.a16z.news/p/charts-of-the-week-attention-is-all