H100 rental rates run 54% above straight-line depreciation, a16z finds
a16z · x · 2026-11-12
a16z analysis of the GPU rental market: as of October 19, rental rates remain above a six-year straight-line depreciation path — A100s by 9%, H100s by 54% — meaning older GPUs are holding value far longer than expected.
Mike Volpi of a16z explains why: the asset was assumed to have a five-year life, but demand is so high that even with a worse watt-to-dollar conversion than Vera Rubin-era chips, "you're going to still use the asset." The ultimate scarcity is in semiconductor manufacturing itself; as long as scarcity persists, residual values stay elevated. Only when sufficient Vera Rubins exist will running H100s stop making sense.
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