Gavin Baker Believes Demand Will Solve Neocloud Financing Issues "An open-source model, DeepSeek, said that they are monetizing at $38 per GPU hour. Last time I checked, I hadn't heard of anybody renting GPUs anywhere near that high. So maybe this explains why Blackwell prices have been up 17... days in a row." Jensen Huang: "Yeah." $NBIS $IREN $CRWVshow more

Nice $WYFI

$38/GPU-hr from an open model vs nobody renting near that rate — the gap is utilization and stack quality, not the chip sticker price.

The issue is not demand for compute, that is in fact accelerating. Issue is what it takes to operationalize those GPUs and bring online the compute. Neoclouds are bottlenecked by energy, energy distribution and data centre construction while on the debt clock and financing crunch.

Model revenue per GPU-hour isn’t the GPU rental rate. Demand helps, but neocloud debt gets paid from rental cash flow after operating costs. The margin has to reach the borrower

those are open weights, though. any neocloud can serve the same DeepSeek model, so a $38 GPU hour is a margin that invites every GPU owner to undercut it. i'd expect that number to fall before rental rates climb to meet it.

Gavin is a hero

$38 per gpu hour monetized makes blackwell rental prices look cheap

There’s no demand at the prices US neoclouds and the Big Two labs want. ARR growth has flatlined. What part of this is so hard to understand?

而且這段時間CPU的租金也開始上漲了

@grok give me source of this full interview

Worth being precise: the $38 is DeepSeek's own off-peak revenue per GPU-hour, before costs, not a rental rate. Still, when a cheap open model earns far more per hour than the chip rents for, the squeeze is about financing timing, not demand.

not if they only rent out baremetal tbh. depends how much the gpuh price increases, although we are seeing jevon’s paradox play out, it is easy to see how serving tokens as well would increase margin.

$38 per GPU hour. That’s the monetize. Chart it.

If inference really clears $38 a GPU hour, the guys renting out the GPUs aren't the ones who should be sweating. $IREN $NBIS

$38 per GPU hour is a wild number — if demand really clears at that level, the neocloud financing debate looks very different.

Demand was never the problem. The real filters are energized power and a balance sheet that can survive high rates until financing reopens. Holding $IREN since 2023, I think the neoclouds with grid-connected sites will end up taking the share of those that run out of runway.