GPU depreciation could be the next big crisis coming for AI hyperscalers — after spending billions on buildouts, next-gen upgrades may amplify cashflow quirks

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Managing asset depreciation is a core component of most modern businesses, but where you can spread the cost of some assets over a decade, or less, modern GPUs threaten an altogether more aggressive lifecycle. The gains being made generation upon generation, particularly in AI performance and chip efficiency, threaten to accelerate asset depreciation beyond what even some of the largest companies can handle. Now, analysts worry that the rapid pace of AI processing power advances from new generations of…



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GPU depreciation could be the next big crisis coming for AI hyperscalers — after spending billions on buildouts, next-gen upgrades may amplify cashflow quirks


Managing asset depreciation is a core component of most modern businesses, but where you can spread the cost of some assets over a decade, or less, modern GPUs threaten an altogether more aggressive lifecycle. The gains being made generation upon generation, particularly in AI performance and chip efficiency, threaten to accelerate asset depreciation beyond what even some of the largest companies can handle. Now, analysts worry that the rapid pace of AI processing power advances from new generations of…



Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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