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How much does the capex model of a datacenter change when the goal is 100% utilization, with no care for node uptime beyond capex efficiency/hardware value main
by lumost 1y ago
How much does the capex model of a datacenter change when the goal is 100% utilization, with no care for node uptime beyond capex efficiency/hardware value mainenance?
I wouldn't be surprised if the cost came down by at least one order of magnitude, two if NVidia and others adjust their margin expectations. If the bet is that OpenAI can ship crappy datacenters with crappy connectivity/latency characteristics in places with cheap/existing power - then that seems at least somewhat plausible.
OpenAI burning 40 billion dollars on datacenters in the next 1 year is almost guaranteed. Modern datacenter facilities are carefully engineered for uptime, I don't think OpenAI cares about rack uptime or even facility uptime at this scale.
- wmf 1y agoPeople who have run these numbers still want tier IVish. I haven't seen evidence of crypto mining "tier zero" datacenters being converted to AI despite the obvious advantages.
- lumost 1y agoAye- given the margins involved, is imagine you could get quite favorable insurance policies from NVDA on tier 0 facilities.