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Did we read a different article? It seems like the claim is that it pays for itself in under 2 years. > For AI servers and the datacenters that wrap around the
by lesuorac 2y ago
Did we read a different article? It seems like the claim is that it pays for itself in under 2 years.
> For AI servers and the datacenters that wrap around them, as we have shown here, for every $1 you spend for an AI cluster and its datacenter (including its power and cooling), you get 87.8 cents back every year that you rent that AI cluster out to customers, assuming a reasonable mix of on-demand and reserved instance hours and a $9.40 per GPU-hour rate. In 410 days, you get your bait back on the entire AI datacenter investment if you rent all the GPUs out. The model we created (riffing on an Nvidia model) shows that for the three years after that, the 87.8 cents per year goes right into your pocket.
- belter 2y agoI am discussing this in the context of their disclosures for Q4 and historical reporting. The "pays itself in 2 years" is intuitively wrong and on the basis of 100% usage estimates. CapEx exploded while depreciation barely increased means Amazon pushed more spending into assets that won’t be depreciated immediately. This inflates short-term profits. In 2024, CapEx surged to almost 120% of operating income. They are spending more on investments than they earn from operations. I dont think it's sustainable.