The All-In Podcast
"It's Nonsense Being Pushed by Short Sellers." - CoreWeave CEO on the GPU Depreciation Debate
Episode Summary
AI-generated · Mar 2026AI-generated summary — may contain inaccuracies. Not a substitute for the full episode or professional advice.
The episode features the CoreWeave CEO addressing the significant debate surrounding GPU depreciation, particularly concerning the shelf life of high-end GPUs like the H100. The CEO vehemently dismisses the notion that GPUs become obsolete quickly, labeling the debate as "nonsense" primarily driven by traders holding short positions in relevant stocks, aiming to talk down prices. The discussion also touches upon concerns raised by figures like Michael Burry, who some suggest might perceive a "sky's falling" scenario for the industry.
The CoreWeave CEO clarifies their company's operational reality, stating that as a relatively small, success-based firm, their clients typically commit to compute resources for extended periods. The average contract length for CoreWeave's services is five years, with some clients signing agreements for six years. This directly contradicts claims, purportedly from some industry commentators, that GPUs become obsolete in as little as 16 months.
Furthermore, the CEO elaborates on CoreWeave's internal accounting practices, revealing that the company uses a six-year depreciation schedule for its GPUs. They express confidence that these GPUs will last beyond six years but consider this a fair and reasonable approach given the rapid pace of technological cycles. The CEO's fundamental argument is straightforward: if customers are willing to pay for the compute for five or six years, the technology demonstrably retains its value, making any argument about premature obsolescence unfounded.
👤 Who Should Listen
- Tech Professionals
- Early Adopters
- Software Engineers
🔑 Key Takeaways
- 1.The CoreWeave CEO believes the GPU depreciation debate, especially regarding H100s, is "nonsense" primarily instigated by short sellers.
- 2.CoreWeave's average client contract for compute services is five years, with some extending to six years, indicating long-term utility of their GPUs.
- 3.Claims that GPUs become obsolete in as little as 16 months are directly contradicted by CoreWeave's contractual agreements with customers.
- 4.CoreWeave employs a six-year depreciation schedule for its GPUs, anticipating that the hardware will remain viable for even longer.
- 5.The CEO's simple metric for a GPU's value is customer willingness to pay for its use over several years, validating its extended shelf life.
- 6.The company's "success-based" model means infrastructure is acquired based on client demand and long-term commitments, not speculative short-term depreciation.
- 7.The discussion acknowledges that figures like Michael Burry have expressed concerns about the industry, which the CoreWeave CEO counters with their operational data.
💬 Notable Quotes
“My take on the GPU depreciation debate is that it's nonsense.”
“Our average contract is 5 years. So any commentary by anyone either inside or outside of the industry that this stuff becomes obsolete in 16 months or whatever nonsense they're spewing, it doesn't in any way match up with the facts on the ground.”
“My approach to this has always been if people are willing to pay me for it, it still has value.”
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