GPU depreciation could be the next big crisis coming for AI hyperscalers — after spending billions on buildouts, next-gen upgrades may amplify cashflow quirks

The rapid pace of AI processing power advances from new generations of GPUs could lead to overwhelming asset depreciation for companies heavily invested in AI infrastructure. With annual GPU releases and significant performance improvements, falling behind even one generation could render hardware unprofitable. The confluence of financing arrangements and limited GPU lifespan poses a serious threat to the AI industry, with concerns about a potential bubble burst. Larger companies like Google and Amazon may be more insulated due to diverse business interests, but they are not immune to the challenges of GPU depreciation and industry instability.