Debate Over 'Crunch Spread' Formula Challenges AI Bubble Narratives

Gavin Baker corrected the 'crunch spread' formula, arguing the key metric is revenue per GPU (token price times volume) minus rent rather than raw token price minus rent, while drwconvexity noted GPU rental margins remain near historic highs, fueling debate over AI bubble claims.

2026-10-24 ~ 2026-10-25 · 3 related posts

• drwconvexity: GPU rental margins are at all-time highs even as crunch spread compresses — drwconvexity · 2026-10-24
• Gavin Baker: crunch spread should be revenue per GPU minus rental cost, not token price spread — GavinSBaker · 2026-10-24
• No AI bubble yet: revenue per GPU minus rental is the real equation — PTrubey · 2026-10-25