NVDA B200 Blackwell GPU Rental price fell by -30% this weekend

TLDR: GPU rental prices are falling, suggesting that there is no chip scarcity like investors believe.

Something that is being immensely ignored/ “kept quiet” through the AI driven rally is that GPUs are not in short supply at all. The narrative going around is that NVDA/ AMD/ memory/ component stocks will run forever because there is a “compute shortage.”

They equate “compute shortage” with “chip demand”…… Only issue with that is that the shortage is not “chips.” The shortage is usable, powered, permitted, monetizable compute……. chips alone are not compute. A GPU sitting in a box is not useful compute.

Too many chips and data center projects have been ordered before the industry proved it could actually power them, deploy them, and earn a profit with them. Jensen sold that narrative to drive demand and power the “beat and raise” machine. The AI blowup created huge demand for compute, meaning the actual processing power needed to run AI.

Then everyone panics and orders chips. hyperscalers/ AI startups/ cloud providers/ neoclouds/ data center companies all rushed to buy GPUs because nobody wanted to be the one without supply. And they over-ordered.

The bottleneck in the “compute shortage” is not chips. It is everything around the chip. Data centers take years to build. And local opposition, power constraints, rising utility bills, water concerns, and permitting delays are increasingly slowing data center projects.

There is currently THOUSANDS of “dark chips” sitting in warehouses collecting dust or attempting to be resold in bulk at deep discounts. Rental prices are flat/ falling which suggests that there is no shortage of chips.