S1: A $6 R1 competitor?

> having 10,000 H100s just means that you can do 625 times more experiments than s1 did

I think the ball is very much in their court to demonstrate they actually are using their massive compute in such a productive fashion. My BigTech experience would tend to suggest that frugality went out the window the day the valuation took off, and they are in fact just burning compute for little gain, because why not...

This is pure speculation on my part but I think at some point a company's valuation became tied to how big their compute is so everybody jumped on the bandwagon.

Matt Levine tangentially talked about this during his podcast this past Friday (or was it the one before?). It was a good way to value these companies according to their compute size since those chips are very valuable. At a minimum, the chips are an asset that acts as a collateral.

I hear this a lot, but what the hell. It's still computer chips. They depreciate. Short supply won't last forever. Hell, GPUs burn out. It seems like using ice sculptures as collateral, and then spring comes.

If so wouldn’t it be the first time in history when more processing power is not used?

In my experience CPU/GPU power is used up as much as possible. Increased efficiency just leads to more demand.

I think you're missing the point: H100 isn't going to remain useful for a long time, would you consider Tesla or Pascal graphic cards a collateral? That's what those H100 will look like in just a few years.