>>106333431
The operating costs aren't particularly high.
Let's take xAis Colossos as an example, it originally featured 100k h100 gpus and draws 150MW, albeit that means the gpus aren't 100% utilized mind you.
Regardless, that means power costs are somewhere between 50-100 million annually, which really isn't that high all things considered.
Much higher are the cost of building the damn data center, they're estimated at $3b, so power cost are only 1/60th to 1/30th of that...
It's estimated that with this cluster gpt 4 could have been trained quite quickly. Some fags said 4 days, let's be a bit more conservative and go for 1-2 weeks. The value of these cards is gonna drop quickly, so let's say after 5 years the cards are almost worthless with all the wear and tear, and what value remains might just be enough to finance the disassembly of the cluster. I mean, hopper has already been superceded by blackwell, so...
Grok has to bring in literally billions in a few years or it'll just be a massive loss. The same is true for every ai company. OpenAI might just have the advantage that they get a advantageous deal from Microsoft but that's just a form of subsidation...
Meta is absolute making no money on this and they have even more gpus...
Neither is google.
They're all losing money out the ass but they don't care because the stock market expects them to invest massively, and because investors are colossal retards who can at most see one quarter ahead the companies are simply motivated to push their stock up to keep investors happy, so they throw more money at it.
For example, on average, x/xai would need every grok user to pay north of $200 annually to break even before the cards are trash. That ain't happening, we all know that, and it's the same for all other services. People will stop using certain LLMs if free plans become unusable, and other hosts will just offer a better free version in the hope of gaining more customers.
Tl;dr its a fking bubble
