Most workers only spend ~1/3 of their time working. If you're running GPU heavy automated workflows, you're usually running batches before shifts start in the morning.

So 50% utilization seems about right, probably higher than I expect. The real question is what is their peak utilization rate, because being capped when you need it most is more important than running the things 24/7/365.

Even if you sell GPU compute, you're still pricing it amortized based on average utilization, so this isn't a deal breaker depending on the business model.

Meanwhile, open models have gotten quite good, and if you have an enterprise grade GPU you can run a lot of the good ones. I run Qwen 3.8 125b on my home server and it's acceptable. The value of owning your own GPU is getting stronger in my opinion. I guess I'll keep an eye out on used server parts or something.

As much as I think this is a bubble, fueled by effectively extortion from Nvidia and the memory makers, but initiated by Scam Altman, this isn't the needle. The needle is the data centre funding.