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NVDAThe anti-obsolescence plot twist
AI land is obsessed with the next shiny chip. But CoreWeave just signed up to rent Nvidia A100 GPUs all the way into 2029, basically telling the market: “Relax, the old stuff still has legs.”
Why that matters for Nvidia
If you’re worried Nvidia’s past-gen hardware gets tossed in the junk drawer the second a newer GPU shows up, this deal is a small but useful reality check. It suggests older accelerators can still be valuable in real workloads, which is great news for Nvidia’s pricing power and its long-tail revenue story.
The bigger investor takeaway
This isn’t just about one rental contract. It’s about the AI boom looking a little less like a sprint and a lot more like a marathon, where yesterday’s chips can still earn their keep.
That matters because:
- it supports the idea that Nvidia’s installed base has durable value
- it eases some depreciation fears around AI infrastructure
- it hints that demand for compute may stay sticky even as newer generations roll out
Big picture: the AI trade may be evolving from “new chip or bust” to “use every chip you can get your hands on.” And for Nvidia, that’s not a bad problem to have.