Chips are automatically a depreciating asset - is there a historical basis for understanding how that affects companies, and how that will affect GPU-centric companies?
The point is it is temporary and long term they are still a depreciating asset.
This is like asking if there's a historical basis for understanding how the depreciation of garden sprinklers affects home value appreciation.
Not a lot of public data about things like that at scale, but there are some things like the Meta Llama report that had ~ 9% annualized gpu failure rate while training Llama 3. Not 100% clear from the Meta report if those are dead hardware or just 'unhappy' because they just put them into the 'interruption caused by' bucket.
Would be interested if anyone had better data on actual live failure rates of h100 or better class gpu that suck so much power.
https://ai.meta.com/research/publications/the-llama-3-herd-o... https://www.trendforce.com/news/2024/10/31/news-datacenter-g...
(There are some limited circumstances where a house can appreciate due to permitting constraints or rapid rises in construction costs, but those are rare and temporary.)
But zoning hell can sometimes make it apply to the housing itself too! For example, where I used to live, tons of housing was marked as "historic" and you literally couldn't tear it down or significantly amend it.