AI Chip Depreciation: A $1 Trillion Question

On November 14th, tech giants plan to invest $1 trillion in AI data centers, with depreciation being a key concern. Companies like Google, Oracle, and Microsoft estimate their servers to last up to six years, but Microsofts computer equipment lasts from two to six years, impacting profitability. AI GPUs, introduced around 2018, pose a unique challenge due to their newness. CoreWeave, a GPU rental company, uses six-year depreciation cycles, but short seller Michael Burry argues that companies like Meta, Oracle, Microsoft, Google, and Amazon may be overstating the useful life of their AI chips, suggesting a shorter lifespan of two to three years.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.