drwconvexity: GPU rental margins are at all-time highs even as crunch spread compresses
drwconvexity · x · 2026-10-24
Responding to claims that the 'crunch spread' keeps widening, @drwconvexity notes that higher GPU prices and lower token prices compress margins on the GPU-rental-to-token-production leg of the trade — but the margin on simply buying and renting out GPUs has never been higher, which is not a sign of slowing inference demand.
Related event: Debate Over 'Crunch Spread' Formula Challenges AI Bubble Narratives(3 posts)→
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