There is a limit to how many GPUs can be profitable at this price point. Suppose you're running a SaaS. You might be able to charge $20/mo and get a sufficient number of customers to cover X amount of GPUs. This does not mean the market can support X * 100 GPUs profitably. THere is a limit to what the market can bear. THere are not infinite customers, in any niche, who will pay $20/mo for an LLM-based SaaS. At some point you will saturate your market of potential customers and purchasing more GPUs will not benefit you. And this even applies cross-SaaS. There is a finite pool of any amount of customers who will pay $20/mo for LLM services. If someone is subscribing to a competitor, they are less likely to pay $20/mo to you as well. All of this to say, it is certainly possible to oversupply GPUs that have a 10x markup. If the price is closer to production cost, then maybe they're cheap enough that you can offer a $10/mo plan profitably, and reach a much wider pool of customers and benefit from more GPUs. But there is a finite number of GPUs at which point the market for a sustainable business cases is satiated.

(Consumer sub prices were used for illustrative purposes but this obviously applies to token and enterprise spending as well. Although they're being a little loose due to FOMO, enterprises will not sign blank checks forever if the promised "replace all human labor" does not materialise)

Also, it goes without saying that a GPU that can not even be powered on for lack of power capacity is not being used profitably, at any price point. It could not be more apparent there is an oversupply relative to its current market price, which is a direct result of Nvidia giving away boatloads of GPUs for stakes in unprofitable companies.