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I worked at an org that had a substantial on-prem GPU datacenter. We transitioned to <Big Cloud Provider> with a substantial negotiated discount rate, with part of the contract being we would sell them all of our hardware and not purchase any more.
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How does this work? Is the OEM giving the cloud provider a big discount or is the cloud provider giving you a teaser rate to lock up your business.
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The list price of cloud is 10x higher than the price of hardware itself so that leaves room for some discounting.
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> and not purchase any more.

why would anyone sign such a contract?

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If you're planning to run in clouds, committing to not buy hardware (during the contract term, presumably) isn't a big imposition. Maybe you switch to a different cloud, and you wouldn't buy hardware for that.

If you want to switch back to on prem, there's probably a way to structure acquiring hardware so it doesn't break the contract. Maybe you lease it, maybe the purchase happens through a related company, maybe there was no way for the contracted cloud to find out...

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I don't know if this was IT shrugging me off or if it was something real but some IT person at this big ISP I worked at told me that they cannot just buy an SSD — my windows box at work was running off of a hard disk in 2019 — and that there was some contract that said any computer hardware we bought had to be through HP or something like that and it takes many months it something like that.
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The usual very short term corporate thinking that maximizes quarter profits while bankrupting the company in the long term. IMO a very shortsighted decision, if not downright stupid.
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There's going to be a golden age of GPGPU compute in the next few years once A100/H100 are fully obsolete for running frontier models efficiently and the price plummets

It will be perfect for stuff like GPU-accelerated query engines, "classical ML" and every other CPU-based workload that could conceivably be offloaded to GPU

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GPGPU? General Purpose GPU? If embarrassingly parallel CPU algorithms weren't offloaded to the GPU previously, why would the A100/H100 price drop make a difference? We had cheap GPU in the past and we still left plenty of performance on the table with CPU programs because they were easier to build.

Is the idea that previously maintaining GPU programs was expensive whereas now AI makes it cheap? If so, I could buy that line of reasoning.

Maybe relatedly, I expect (hope) the hardware manufacturers will ramp up supply in the meanwhile which would also put downward pressure on GPUs. Right now though this hardware crunch is making me sad, not even because of GPUs but also because of general memory / disk.

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GPGPU programming has become significantly easier now and the payoff is bigger (better hardware), due to the immense investment in this due to ML/AI.
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That should be illegal. Sounds like a very fraudulent business tactic.
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Fraudulent, I wouldn't say so. Anti-consumer or anti-competitive? Sounds like.
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Would you call a trade-in a fraudulent tactic?
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Trade-ins are voluntary.
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so are buybacks. you choose to sign the contract. there's no way they didn't have an escape clause, although likely it meant not using the cloud provider anymore
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> so are buybacks. you choose to sign the contract

Right, so they're not voluntary.

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Literally what? Do you understand what is being proposed?
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Yes. "You choose to sign the contract" is not a reasonable argument, for two reasons:

1. There is one supplier, so you have no choice. 2. Even if you had a choice to sign the contract, this still means that it's not the same as a trade-in, because trade-ins are always voluntary, but once you have signed the contract, a right of first refusal is not.

In general, the "you chose to sign the contract" argument is a poor justification for bad contracts. If the contract is bad, it is bad regardless of whether you chose to sign it.

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The Grift Economy places all legalities on the marks and their inability to form legal fights.
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Sounds like capitalism at its finest.
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Good old "win-win-lose"
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isn't Ferrari the brand that requires any purchaser to be an existing owner? I could see NVIDIA going for something like that.
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The only reason a datacenter would ditch their H100 is if it becomes uneconomical to run them, with newer silicon providing much more power efficiency. When that happens they'll look like a used V100 looks today: horribly inefficient, lacking modern data types and engines, requiring screaming server fans with weird adapters to not melt, way beyond end of life in terms of cuda support. Almost completely damn useless unless you really have no other alternative.
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Wouldn't that be crazy - a hobbyist market for H100s?

Maybe someone could start a business buying up and rehousing these.

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They're pretty specific to the datacenter use case with no outputs and they need to be cooled externally, principally through the very loud high speed fans used in data centers. I suppose you could strap a fan to one and put it in a normal case or maybe make a dedicated after market cooler (like the water blocks made for water cooling cases).
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I think there's a market for a home AI server that can run an LLM or video gen model behind a web frontend. Not literally a raspberry pi strapped to an H100, but something with lopsided enough specs that people joke it is.

And precisely because it's such a huge headache to do yourself, I think a small company could make a nice business wrapping up used datacenter cards in that sort of server.

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> Very loud high speed fans

if you haven't heard a 5u server intended for a datacenter rack come to life it's quite the experience. Sounds like a plane taking off.

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This is also true of the older P100 and hobbyists do this stuff now, today
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Or you can secure yourself a DLC one and try to feed it with the correct regime (liquid composition, temperature and flow rate). I'd say good luck.

These things get hot and are fussy about their requirements.

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H100s (and the PCIe converter card you need) are available on eBay.
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The GPU alone has a TDP of 700W, together with everything else (CPU, RAM, storage, fans) you're looking at 1500W+. Depending on the country, that may be enough to saturate your home's electricity uplink...
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Never heard electrical uplink before but to those wondering Italy, India, and Japan all have requirements around 3kw. I was slightly surprised by this, but in the end if your running this in a tiny space with that low of power your already probably not buying used H100s.
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That's actually less bad than I assumed. High-end gaming GPUs are already almost at 600W with peak usage above that. I assumed it was much worse than that; that seems absolutely feasible for running at home.
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Hell no. 1.5kw is half a socket capacity. A heat pump or many kitchen appliances are using much more. Our car charger uses more as well.
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That's why they said "depending on country"

In North America we are on 120V, making a standard 15A outlet only 1500W max, and something like 1200W sustained. To use higher wattage appliances, we have to upgrade our outlets to 20A (2000/1600W) or up our voltage to 240V, but that carries a different set of plugs and outlets as well.

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Usually the home service is 200+ amps these days which is 24 KW total across all circuits, though you're right that most individual circuits are only 10-15 amp.
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> In North America we are on 120V, making a standard 15A outlet only 1500W max, and something like 1200W sustained.

It's 1800W for short periods and 1500W sustained.

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In the US they have a 120V system so it might actually saturate a normal socket over there. My PC room has a 16A fuse and 230V though, so should be plenty :)
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A typical hair dryer uses about 1500W. I guess GPUs are mechanically not much different from a hair dryer.
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Install it in your bathroom, use it like a restroom hand dryer.
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