GPU Rental Rates Up 38% YTD: Neocloud Economics Hinge on Residual Value
abhiadesai · x · 2026-10-20
- The quoted thread argues every prior leasing business (real estate, aircraft, shipping, rail, towers) works because asset useful life exceeds the lease term; Neoclouds are the first where markets assumed the opposite, making residual value the load-bearing assumption.
- The author counters with data: A100 launched in 2020 with rental rates up 20% YTD, H100 up 38% YTD, and CoreWeave's A100 contracts running through 2029 — implying a 9-year useful life is roughly right.
- He predicts that when individuals start buying and leasing robots in three years, the same critics will apply their flawed GPU useful-life reasoning to that market — and be wrong again.
More from Infra
- Single Meta site equals 25% of Europe's AI compute; xAI Colossus rivals 60% of EU+UK — NinaDSchick · 2026-10-20
- Stardock CEO: local AI will dominate most AI work in 18 months, datacenters pointless — draginol · 2026-10-20
- Students get 1 year of Google AI Pro free, with 35 hours of monthly A100 on Colab — CeFurkan · 2026-10-20
- 768p video with audio generated on just two desktop DGX Sparks using new FastVideo QAD-v2 — Scobleizer · 2026-10-20
- AI power shortage is overstated: upgrades and exports shrink the gap, glut by 2028 — toptickcrypto · 2026-10-20
- Nebius launches live GPU spot pricing tracker for H100/H200/B200/B300 — demian_ai · 2026-10-20