Extended GPU economic lifespan and depreciation benefits

Jensen Huang and Elon Musk Believe GPUs Have Much Longer Economic Lifespans Than Expected Elon Musk argued that continuous improvements in AI models allow existing GPUs to generate increasingly more "useful intelligence per watt," extending their economic value Jensen Huang stated that Blackwell and Vera Rubin GPUs could remain productive for eight years or more, compared with the four-year depreciation schedules commonly used today According to Silicon Data, older GPUs retain significant value relative to their original purchase prices: A100 at 25%, H100 at 58%, and B200 at 158% For neoclouds, extending depreciation schedules from four to eight years would halve annual depreciation expenses, improving reported margins. Longer GPU lifespans could also strengthen collateral values and improve financing conditions However, Huang emphasized that sustained compute demand remains essential to supporting these valuations