PremiumBillions In Nvidia Chips Collecting Dust In Amazon Warehouses As AI's "Paperweight" Problem Goes Mainstream
For much of the past year, we have been pounding the table on what is probably the most underappreciated problem in the AI capex boom.
It goes like this: hyperscalers order hundreds of billions in Nvidia silicon, the chips get built, shipped and delivered on schedule... and then they sit in crates, because the data center they were meant for has no power, no transformers, or no roof. Until those chips are plugged in, they earn nothing, they depreciate anyway, and the scarcity they leave behind keeps the price of every GPU-hour that is online sky-high. In other words, a stockpile of unlit chips is the world's most expensive, and very inflationary, paperweight.