Margins are typically not so razor thin that you cannot operate with technology from one generation ago. 15 vs 17 mpg is going to add up over time, but for a taxi company it's probably not a lethal situation to be in.
At least with crypto mining this was the case. Hardware from 6 months ago is useless ewaste because the new generation is more power efficient. All depends on how expensive the hardware is vs the cost of power.
And yet they aren't running planes and engines all from 2023 or beyond: See the MD-11 that crashed in Louisville: Nobody has made a new MD-11 in over 20 years. Planes move to less competitive routes, change carriers, and eventually might even stop carrying people and switch to cargo, but the plane itself doesn't get to have zero value when the new one comes out. An airline will want to replace their planes, but a new plane isn't fully amortized in a year or three: It still has value for quite a while
If a taxi company did that every year, they'd be losing a lot of money. Of course new cars and cards are cheaper to operate than old ones, but is that difference enough to offset buying a new one every one to three years?
>If a taxi company did that every year, they'd be losing a lot of money. Of course new cars and cards are cheaper to operate than old ones, but is that difference enough to offset buying a new one every one to three years?
That's where the analogy breaks. There are massive efficiency gains from new process nodes, which new GPUs use. Efficiency improvements for cars are glacial, aside from "breakthroughs" like hybrid/EV cars.
>offset buying a new one every one to three years?
Isn't that precisely how leasing works? Also, don't companies prefer not to own hardware for tax purposes? I've worked for several places where they leased compute equipment with upgrades coming at the end of each lease.
Who wants to buy GPUs that were redlined for three years in a data center? Maybe there's a market for those, but most people already seem wary of lightly used GPUs from other consumers, let alone GPUs that were burning in a crypto farm or AI data center for years.
who cares? that's the beauty of the lease. once it's over, the old and busted gets replaced with new and shiny. what the leasing company does is up to them. it becomes one of those YP not an MP situations with deprecated equipment.
The leasing company cares - the lease terms depend on the answer. That is why I can lease a car for 3 years for the same payment as a 6 year loan (more or less) - the lease company expects someone will want it. If there is no market for it after they will still lease it but the cost goes up
Depends on the price, of course. I'm wary of paying 50% of new for something run hard 3 years. Seems an NVIDIA H100 is going for $20k+ on EBay. I'm not taking that risk.
That works either because someone wants to buy old hardware for the manufacturer/lessor, or because the hardware is EOL in 3 years but it's easier to let the lessor deal with recyling / valuable parts recovery.
You can sell the old, less efficient GPUs to folks who will be running them with markedly lower duty cycles (so, less emphasis on direct operational costs), e.g. for on-prem inference or even just typical workstation/consumer use. It ends up being a win-win trade.
Building a new data center and getting power takes years to double your capacity. Swapping out out a rack that is twice as fast takes very little time in comparison.
Depends at the rate of growth of the hardware. If your data center is full and fully booked, and hardware is doubling in speed every year it's cheaper to switch it out every couple of years.
Both companies bought a set of taxis in the past. Presumably at the same time if we want this comparison to be easy to understand.
If company A still has debt from that, company B has that much debt plus more debt from buying a new set of taxis.
Refreshing your equipment more often means that you're spending more per year on equipment. If you do it too often, then even if the new equipment is better you lose money overall.
If company B wants to undercut company A, their advantage from better equipment has to overcome the cost of switching.
> They both refresh their equipment at the same rate.
I wish you'd said that upfront. Especially because the comment you replied to was talking about replacing at different rates.
So your version, if company A and B are refreshing at the same rate, then that means six months before B's refresh company A had the newer taxis. You implied they were charging similar amounts at that point, so company A was making bigger profits, and had been making bigger profits for a significant time. So when company B is able to cut prices 5%, company A can survive just fine. They don't need to rush into a premature upgrade that costs a ton of money, they can upgrade on their normal schedule.
TL;DR: six months ago company B was "no longer competitive" and they survived. The companies are taking turns having the best tech. It's fine.
This is the perfect thing to learn on. It's actually a very simple thing as these things go. I expect there would be just a few changes needed, typically the components used in these things are friendly to this need and you just need to reconfigure them a bit or order a slightly different part number for a few components.
Are you saying they are adapting them in a kind of cultural adaptation to the ChatGPT outputs, or are you implying the higher likelihood that they sees simply unquestioningly posting/sending AI outputs?
It's the latter. Soo many "official" company communication is "a clown told the AI clown to generate something about the topic". Not even editing anything, just copy paste
reply