Once again, the GPU depreciation bear thesis is dead.

Elon on the $SpaceX(SPCX.US) call: "The value of compute per watt will increase over time, not decrease... that's why you see things like even old computers like H100s renting for more than they rented when they were new."

When supply is this constrained, GPU rental prices are set by the value of the marginal token, not the replacement cost of the chip.

Models keep getting better, and better models raise the value of every installed watt faster than new GPUs deflate the old ones.

Various datapoints all stack up:

-> $SpaceX(SPCX.US) says compute contracts are renewing "at higher dollars per watt, not lower dollars per watt"

-> 1-year H100 contract pricing went from ~$1.70/hr to ~$2.35/hr between Oct 2025 and Mar 2026 (a 2022 chip!)

-> $Coreweave(CRWV.US) signed an A100 contract running into 2029 (a 2020 chip) and said older-gen pricing is at / above a year ago, and raised list prices ~25% in July.

-> $Nebius(NBIS.US)'s first Blackwell auction cleared 15% above its previous high and as a reminder....they told customers H100 on-demand goes up ~17% (from Oct 1).

-> Zuckerberg: $Meta Platforms(META.US) is getting offers for its compute "at a significant premium over what we paid for it".

-> Lenders are now lending against GPUs out to 2030 e.g. $Nebius(NBIS.US) borrowed against its GPUs at SOFR+250 in July.

Feels like the 2-3 year GPU useful life bear thesis keeps getting setback.

Ofc, the one thing that ruins the party is the S/D gap closing -- Rental prices fall back toward replacement cost + older GPUs get repriced on perf/W.

Which won't happen anytime soon.