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These are great points.

However, I don’t think these companies provision capacity for peak usage and let it idle during off peak. I think they provision it at something a bit above average, and aim at 100% utilization for the max number of hours in the day. When there is not enough capacity to meet demand they utilize various service degradation methods and/or load shedding.



Is this why I get anthropic/Claude emails every single day since I signed up for their status updates? I just assumed they were working hard with production bugs but in light of this comment, if you don't hit capacity constraints every day, you are wasting money?


This is true for all capital equipment - whether it's a GPU, a bore drill, or an earth mover.

You want to make use of it at as close to 100% as possible.


With the caveat that GPUs depreciate a bit faster obviously. A drill is still a drill next year or a decade from now.


yes, but the capital is still tied to it. you want it to Have a meaningful ROI, not sitting in a warehouse.


Just like at an all-you-can eat buffet.




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