5.5 year depreciation is only on the chips. Power, networking, cabling, the actual construction of the building is probably closer to 60% of that number. Also, they are only renting out colosus 1 ($10B), not colosus II ($18B).

So, it's 10B, with $4b of that being attributed to a 5 year depreciation. The rest of the facility probably has a depreciation of around 20 years, and you can easily swap out GPU's, TPU's, Trititum, Tesla's own GPU's, as they start failing, so the normal depreciation curve only "kinda applies here".

There is no interest, as he was venture funded not debt funded.

Electricity is coming from Nat Gas Turbines, so again even though you have a some depreciation on the equipment there, you are getting it for far below meter prices.

So, from my math, he gets ROI on the chips in 3 months, and ROI on the entire facility in 9 months? That's literally the best investment of all time.

I am very skeptical that musk is 10-20% interest. I would guess closer to 5.

That depreciation it too high in practice.

5 year old H100s are now completed depreciated but are being rented out at higher rates than when they were new.

> Who is going to rent the GPUs then?

I'd LOVE a way to be on the other side of that bet.

If only there was another way outside of buying into all the other Elon risks associated with SpaceX.

That assumes they are renting out the whole capacity. Have you seen anything suggesting that's the case?