Nvidia's introduction of Blackwell GPUs threatens the utility of the older Hopper models, leading to potential depreciation adjustments by major cloud providers like Amazon, Meta, and Google. These adjustments could reflect the rapid pace of technological advancement and the obsolescence of older hardware. Companies that overstate earnings may face significant profit impacts due to asset value reassessment. Nvidia's CEO humorously noted that the transition to Blackwell warrants reevaluation of asset usefulness, suggesting the AI landscape is rapidly evolving, and cloud giants need to adapt accordingly.
"When Blackwell starts shipping in volume, you couldn't give Hoppers away. There are circumstances where Hopper is fine, but not many." - Jensen Huang, Nvidia CEO.
"As new technology improves, previous versions become obsolete or less useful much faster. This makes these assets less valuable, requiring adjustments in depreciation to reflect their reduced worth." - Tech Analyst Ross Sandler.
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