Sub-$2/hour H100s mean the market is in oversupply
Why Decentralized AI Needs Cosmos: Greg Osuri of Akash Explains (The Interop)
“If one wants to amortize their chip within two years, I think the price is around $2 an hour, roughly, including the energy cost… so if anything less than $2 an hour, you’re losing money. We have chips for [a] dollar an hour too… that tells you the market is — there’s oversupply of chips now.” — 00:21:57
Context: Post-2023 GPU crunch: opportunists financed small fragmented GPU fleets, demand didn’t catch up, and loose (non-interconnected) GPUs crashed in price while large clusters stayed expensive. He notes Lambda went from refusing crypto buyers to “begging us to take the GPUs.”