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Techcrunch reports that AI coding tools have "very negative" gross margins. In other words, they are losing money on every user. (techcrunch.com)
submitted 1 year ago by to c/technology@lemmy.world
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[–] 4 points 1 year ago (8 children)

I don't see why they can't be resold. As long as there's a market for new AI hardware, there will continue to be a market for the older stuff. You don't need the latest and greatest for development purposes, or things that scale horizontally.

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  • [–] 10 points 1 year ago (7 children)

    I didn't say they couldn't be resold, they simply won't have as wide a potential user market like an generic GPU would. But think about it for a sec, you've got thousands of AI dedicated gpu's going stale whenever a datacenter gets overhauled or a datacenter goes bust.

    that's gonna put a lot more product on the market that other datacenters aren't going to touch - no one puts used hardware in their racks - so who's gonna gobble up all this stuff?

    not the gamers. who else needs this kind of stuff?

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  • [–] 6 points 1 year ago*

    no one important puts used hardware in their racks

    FTFY. Just about every msp I've worked for has cut corners and went with 2nd hand (or possibly grey market) hardware to save a buck, including the ones who colo in "real" data centers. I would not be surprised to find that we're onboarding these kinds of cards to make a bespoke AI platform for our software customers here in a few years.

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  • [–] 6 points 1 year ago (1 child)

    Also depends how hard the AI runs them. A good chunk of the graphics cards that were used as miners came out on life support if not completely toasted. Games generally don't run the piss out of them like that 24/7, and many games are still CPU bound.

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  • [–] 5 points 1 year ago (1 child)

    I'm not sure that they're even going to be useful for gamers. Datacenter GPUs require a substantial external cooling solution to stop them from just melting. Believe NVidia's new stuff is liquid-only, so even if you've got an HVAC next to your l33t gaming PC, that won't be sufficient.

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