It’s definitely a good business practice to need more startup investments to m just to keep the lights on. Totally normal. Literally speed running capitalism. How fast can you realize resources aren’t infinite but at a global scale.

I’d be more interested in efficiency under load.

There is evidence that some training runs at bigger companies are hilariously inefficient, or even that they run busywork to meet contract quotas.

And I’ve seen some staggering inefficiency even just deploying stuff, like running Ollama on an H100 box. It boggles my mind.

Data centers are simply the wrong way to approach this. The only reason for it is for billionaires to attempt full value capture of the emerging tech. The cost to run them, the cost to society and our environment - simply not worth it. I’m so glad that free open weight models are eating their lunch, and am eagerly looking forward to the AI bust cycle when we can score these graphics cards for cheap to put in normal PCs again.

Fucking capitalism man, what a mistake.

Most workers only spend ~1/3 of their time working. If you’re running GPU heavy automated workflows, you’re usually running batches before shifts start in the morning.

So 50% utilization seems about right, probably higher than I expect. The real question is what is their peak utilization rate, because being capped when you need it most is more important than running the things 24/7/365.

Even if you sell GPU compute, you’re still pricing it amortized based on average utilization, so this isn’t a deal breaker depending on the business model.

Meanwhile, open models have gotten quite good, and if you have an enterprise grade GPU you can run a lot of the good ones. I run Qwen 3.8 125b on my home server and it’s acceptable. The value of owning your own GPU is getting stronger in my opinion. I guess I’ll keep an eye out on used server parts or something.

That reads like babbling stupid. I have to wonder if it was written by ai.

Oh, they don’t work at night? Me neither.

It’s so over. They leverage debt to buy these things and NVIDIA is egging them on. The datacenter companies don’t have the market and can’t even install the new hardware that they are buying and GPUs are just sitting idle. They buy this on debt well on advance because every CEO is fearing that they will miss out in the future if they buy today. That money needs they need to paid back, but where is the money going to come from if they are not using the product? Next is Nvidia going to come in the next few years with a new product and say that the silicon that they have in their warehouses sitting idle and depreciating is now shit and here is the latest model, now pay up piggy. What then?

That’s like daily driving a giant SUV because you drive eight hours to grandma’s house every Christmas