00:00:00
What is the shelf life of a 100 right
00:00:02
now? That's been a big debate for your
00:00:04
company, for Microsoft and I guess
00:00:06
Michael Bur who you must have known when
00:00:08
you were a quant saying, "Oh my god, the
00:00:10
whole industry is the sky's falling." My
00:00:12
take on the GPU depreciation debate is
00:00:15
that it's nonsense. It's a debate that
00:00:17
is being brought to the forefront by
00:00:19
some traders that have a short position
00:00:21
in the stock and they're trying to uh
00:00:23
talk down. Look, here's what we know.
00:00:25
When we buy infrastructure, we're a
00:00:27
success based company, right? We're a
00:00:28
small company on a relative basis
00:00:30
compared to the enormous companies that
00:00:32
we're competing with. And so our clients
00:00:34
come into us and they buy compute for 5
00:00:37
years, for 6 years. Our average contract
00:00:39
is 5 years. So any commentary by anyone
00:00:44
either inside or outside of the industry
00:00:45
that this stuff becomes obsolete in 16
00:00:47
months or whatever nonsense they're
00:00:49
spewing, it doesn't in any way match up
00:00:52
with the facts on the ground. The facts
00:00:54
on the ground is they're buying it for 5
00:00:55
years. And my approach to this has
00:00:58
always been if people are willing to pay
00:01:00
me for it, it still has value.
00:01:02
>> Correct.
00:01:02
>> Pretty simple way of of approaching it.
00:01:04
We use a six-year depreciation. We
00:01:06
believe that the GPUs will last in
00:01:08
excess of 6 years, but we felt like that
00:01:10
was a fair and reasonable approach to a
00:01:12
technology cycle that's moving at this
00:01:14
velocity.
