Comment by AYBABTME
2 hours ago
I don't get how this is unique to GPU clusters. As a general rule, underwriters are not qualified to operate and maintain the assets they underwrite loans for. That's why houses, cars, equipment, ... go at auction at a fraction of their value. And why lenders have insurance.
> I don't get how this is unique to GPU clusters
It isn't, and you're right. This is just a long-winded article by someone who thinks they've come across a deep, crucial insight.
I witnessed a bank foreclosure stemming from large, unpaid loans to a lumber mill. The bank absolutely didn't want to take possession of the operation, but had no choice when the founder decided to call it a day.
The bank had no idea what to do with finished lumber sitting in the drying ovens, let alone the entirety of mill infrastructure itself. After struggling to find a buyer, they hired the founder as a consultant to handle liquidation. The same would happen with a repossessed datacentre.
Or... auctions are a terrible way to buy big expensive risky purchases.
Auction prices account for that risk, you don't get to do all of the verification you do for normal purchases.
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