# Sub-$2/hour H100s mean the market is in oversupply

- **Speaker:** Greg Osuri
- **Attribution:** attributed
- **Said:** 2024-11-09
- **Theme:** GPU Economics — https://www.gregosuri.com/predictions/gpu-economics/
- **Source:** Why Decentralized AI Needs Cosmos: Greg Osuri of Akash Explains (The Interop)
- **Watch at:** 00:21:57 — https://www.youtube.com/watch?v=3_gGBRqzxrQ&t=1317s
- **Canonical:** https://www.gregosuri.com/predictions/gpu-economics/2024-11-09-sub-2-hour-h100s-mean-the-market-is-in-oversupply-bkjt/
- **Cite as:** Greg Osuri, "Sub-$2/hour H100s mean the market is in oversupply," Why Decentralized AI Needs Cosmos: Greg Osuri of Akash Explains (The Interop), 9 Nov 2024, 00:21:57. https://www.youtube.com/watch?v=3_gGBRqzxrQ&t=1317s

## Quote — verbatim

> 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.

## Context — site annotation, not spoken

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."