Patel reports H100 rental prices have dropped from $3-4 per hour to $2.15 or less, approaching natural cost of $1.40.
“An hour. Right? For shorter term or midterm deals. Right now, it's like, if you want a six month deal, you could get, like, $2.15 or less.”
Patel says cloud pricing varies by three times due to poor marketing, sales, and stranded compute capacity.
“Like the the cost difference between different clouds can be as much as three x. Right? Because a lot of these clouds are bad at marketing, bad at sales, stranded compute.”
Patel compares GPU purchasing process to buying drugs, calling people to ask about availability and pricing.
“my opinion on how you buy GPUs is that it's like buying cocaine or any other drug. This is described to me, not me.”
Patel compares buying GPUs to buying cocaine with informal texts asking for availability and pricing.
“You call up a couple people. You text a couple people. You ask, yo. How much you got? What's the price? It's like Exactly. This is fucking like, buy drugs. Like oh, sorry. Sorry.”
Patel reports five or six neo clouds have already gone out of business in just a few years.
“There's I believe five or six that have already gone out of business. It's only been a few years. Right. Right?”