Even if you didn't have optimizations involved in terms of job scheduling, they would just build as many warehouses as necessary filled with as many racks as necessary to serve the required user base.
Unlike the investments in railways or telephone cables or roads or any other sort of architecture, this investment has a very short lifespan.
Their point was that whatever your take on AI, the present investment in data centres is a ridiculous waste and will always end up as a huge net loss compared to most other investments our societies could spend it on.
Maybe we'll invent AGI and he'll be proven wrong as they'll pay back themselves many times over, but I suspect they'll ultimately be proved right and it'll all end up as land fill.
The servers will be replaced, the networking equipment will be replaced. The building will still be useful, the fiber that was pulled to internet exchanges/etc will still be useful, the wiring to the electric utility will still be useful (although I've certainly heard stories of datacenters where much of the floor space is unusable, because power density of racks has increased and the power distribution is maxed out)
What kind of disk and how much memory is in there?
I think we would get all this technology without going to the moon or Space Shuttle program. GPS, for example, was developed for military applications initially.
Imagine if Columbus verified that the New World existed, planted a flag, came back - and then everything was cancelled. Or similarly for literally any colonization effort ever. That was the one downside of the space race - what we did was completely nonsensical, and made sense only because of the context of it being a 'race' and politicians having no greater vision than beyond the tip of their nose.
Datacenters could go into the business of making personal PC's or workstations using the older NVIDIA cards and sell them.
Sure, datacenters will get rid of the hardware - but only because it's no longer commercially profitable run them, presumably because compute demands have eclipsed their abilities.
It's kind of like buying a used GeForce 980Ti in 2025. Would anyone buy them and run them besides out of nostalgia or curiosity? Just the power draw makes them uneconomical to run.
Much more likely every single H100 that exists today becomes e-waste in a few years. If you have need for H100-level compute you'd be able to buy it in the form of new hardware for way less money and consuming way less power.
For example if you actually wanted 980Ti-level compute in a desktop today you can just buy a RTX5050, which is ~50% faster, consumes half the power, and can be had for $250 brand new. Oh, and is well-supported by modern software stacks.
I think the existence of a pretty large secondary market for enterprise servers and such kind of shows that this won't be the case.
Sure, if you're AWS and what you're selling _is_ raw compute, then couple generation old hardware may not be sufficiently profitable for you anymore... but there are a lot of other places that hardware could be applied to with different requirements or higher margins where it may still be.
Even if they're only running models a generation or two out of date, there are a lot of use cases today, with today's models, that will continue to work fine going forward.
And that's assuming it doesn't get replaced for some other reason that only applies when you're trying to sell compute at scale. A small uptick in the failure rate may make a big dent at OpenAI but not for a company that's only running 8 cards in a rack somewhere and has a few spares on hand. A small increase in energy efficiency might offset the capital outlay to upgrade at OpenAI, but not for the company that's only running 8 cards.
I think there's still plenty of room in the market in places where running inference "at cost" would be profitable that are largely untapped right now because we haven't had a bunch of this hardware hit the market at a lower cost yet.
And 40 P40 GPUs that cost very little, which are a bit slow but with 24gb per gpu they're pretty useful for memory bandwidth bound tasks (and not horribly noncompetitive in terms of watts per TB/s).
Given highly variable time of day power it's also pretty useful to just get 2x the computing power (at low cost) and just run it during the low power cost periods.
So I think datacenter scrap is pretty useful.
Just take a look at how rapidly the bubble was written down with deepseek’s first announcement and the narrative is still that whoever owns the most Nvidia GPUs and datacenters will win.
>A typical 1U or 2U server can accommodate 2-4 H100 PCIe GPUs, depending on the chassis design.
>In a 42U rack with 20x 2U servers (allowing space for switches and PDU), you could fit approximately 40-80 H100 PCIe GPUs.
Supermicro will sell you a full rack loaded with servers [1] providing 13.4 TB of GPU memory.
And with 132kW of power output, you can heat an olympic-sized swimming pool by 1°C every day with that rack alone. That's almost as much power consumption as 10 mid-sized cars cruising at 50 mph.
[1] https://www.supermicro.com/en/products/system/gpu/48u/srs-gb...
Imperial units are so weird
You can pick up a DGX-1 on Ebay right now for less than $10k. 256 GB vRAM (HBM2 nonetheless), NVLink capability, 512 GB RAM, 40 CPU cores, 8 TB SSD, 100 Gbit HBAs. Equivalent non-Nvidia branded machines are around $6k.
They are heavy, noisy like you would not believe, and a single one just about maxes out a 16A 240V circuit. Which also means it produces 13 000 BTU/hr of waste heat.
Heating my house with a giant diesel-powered radiant heater from across the street is infinitely efficient, too, since I use no power in my house.
If your grid is fossil fuels burning the fuel directly is more efficient. In all cases a heat pump is more efficient.
- There's an upstream loss on electricity directly in proportion to how much you use; ignoring this tilts the analysis in favor of electricity.
- You pay more for heat from electricity than gas, in part because of this loss.
At 90°C you can do sous vide, so basically use that waste heat entirely.
For such temperatures you'd need a CO2 heat pump, which is still expensive. I don't know about gas, as I don't even have a line to my place.
Point being, you can throttle your equipment to the desired temperature and use that energy effectively.
In sane units: 3.8 kW
5.1 Horsepower
:D
> 5.1 Horsepower
0-60 in 1.8 seconds
0-100 in 1.92 seconds
I just looked at a spec sheet for a 230V single-phase 12k BTU mini-split and the minimum circuit ampacity was 3A for the air handler and 12A for the condenser, add those together for 15A, divide by .8 is 18.75A, next size up is 20A. Minimum circuit ampacity is a formula that is (roughly) the sum of the full load amps of the motor(s) inside the piece of equipment times 1.25 to determine the conductor size required to power the equipment.
So the condensing unit likely draws ~9.5-10A max and the air handler around ~2.4A, and both will have variable speed motors that would probably only need about half of that to remove 12k BTU of heat, so ~5-6A or thereabouts should do it, which is around 1/3rd of the 16A server, or a COP of 3.
In this case, 12A is the maximum continuous load allowed on a 15A breaker. The unit itself probably uses between 900-1000w (7.5A to 8.3A), the spec sheet might say 12A to encourage a dedicated circuit for the A/C unit which then gets added to Amazon’s specs on their website.
The amazon page specifically said 1354 watts, but I think that's actually for the 14300BTU model. 12000BTU is 9.72 amps.
Anyway, doesn't this make my actual argument stronger? These units fit even better into a normal circuit than I thought, and make the mini-split look even worse in comparison.
It’s the same level of power consumption. I’m not even sure what you’re asking at this point, to be honest.
My argument was that you do not need such a circuit.
The breaker size being 20A 2P is a consequence of the NEC requiring you to size the wire based off the equipment nameplate rating of 15A, which is based off the full load amps of the motors inside the equipment.
Full load amps is the max amount of current a motor can draw at a specific voltage and is used for sizing wire and overcurrent protection for a piece of equipment. It doesn’t always match up the current a motor draws while it’s running normally. You take full load amps times 1.25 to get minimum circuit ampacity, which you use to size the conductors.
So while you are correct that a 240V 12000 BTU minisplit wont draw anywhere near 20A, the specific minisplit I looked at required a 20A breaker due to the minimum circuit ampacity being 15A. If the MCA was 12A, you could use a 15A breaker; an MCA of 8A would allow using a 10A breaker, and so on.
If you use fuses, you can size the overcurrent protection at 100%, breakers require 125% of the load for a continuous load. So you could use a 30A fusible disconnect switch fused at 15A for a unit with an MCA of 15A.
Instead I'm saying that particular minisplit is a lazy design and we can get a 12000 or higher BTU unit with a much smaller nameplate rating. Not only will it only need a single-pole breaker, the required circuit probably already exists.
How useful is this Tesla-era hardware on current workloads? If you tried to run the full DeepSeek R1 model on it at (say) 4-bit quantization, any idea what kind of TTFT and TPS figures might be expected?
Haha. I bought a 20 yro IBM server off eBay for a song. It was fun for a minute. Soon became a doorstop and I sold it as pickup-only on eBay for $20. Beast. Never again have one in my home.
Didn’t the DGX-1 come out 9 years ago?
Each of these NAND chips hundreds of dies of flash stacked inside, and they are hooked up to the same data line, so just 1 of them can talk at the same time, and they still achieve >1GB/s bandwidth. If you could hook them up in parallel, you could have 100s of GBs of bandwidth per chip.
You could probably make special NAND chips where all of them can be active at the same time, which means you could get 100GB+ bandwidth out of a single chip.
This would be useless for data storage scenarios, but very useful when you have huge amounts of static data you need to read quickly.
And I was somehat conservative with the numbers, a modern budget SSD with a single NAND can do more than 5GB/s read speed.
And I was somehat conservative with the numbers, a modern budget SSD with a single NAND can do more than 5GB/s read speed.
From what I understand, this hardware has a high failure rate over the long term especially because of the heat they generate.
After years of “AI is a bubble, and will pop when everyone realizes they’re useless plagiarism parrots” it’s nice to move to the “AI is a bubble, and will pop when it becomes completely open and democratized” phase
I don't think people realize the size of these compute units.
When the AI bubble pops is when you're likely to be able to realistically run good local models. I imagine some of these $100k servers going for $3k on eBay in 10 years, and a lot of electricians being asked to install new 240v connectors in makeshift server rooms or garages.