Better Software Optimization Makes Hardware More Valuable

chandan1_ · x · 2026-07-14

The author argues that performance gains from software optimization will outpace hardware improvements by 1000x. However, this is actually bullish for hardware: as algorithmic efficiency continues to rise, hardware will become scarcer, more valuable, and command higher rental prices.

The post also cited notes on NVIDIA's performance optimization in vLLM and the conclusion that AMD still lags behind on certain models, supporting the argument that hardware still holds stronger pricing power.

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