1 00:00:04,621 --> 00:00:05,401 All right. 2 00:00:05,801 --> 00:00:06,881 Happy Thursday. 3 00:00:07,441 --> 00:00:09,321 I like how full this room is. 4 00:00:10,461 --> 00:00:11,461 It's Wednesday. 5 00:00:11,701 --> 00:00:12,221 It's Wednesday? 6 00:00:13,181 --> 00:00:14,521 Oh, sorry. 7 00:00:14,681 --> 00:00:16,281 I'm clearly ahead of everybody here. 8 00:00:17,241 --> 00:00:18,201 Happy Wednesday. 9 00:00:18,401 --> 00:00:19,381 My name is Carmen Li. 10 00:00:19,701 --> 00:00:23,061 I'm the CEO for Compute Exchange as well as SiliconData. 11 00:00:23,841 --> 00:00:26,801 I love the previous session. 12 00:00:26,801 --> 00:00:29,701 We talked a lot about the whole ecosystem, 13 00:00:30,261 --> 00:00:33,841 the financiers, and the spot market traders, and the hedgers. 14 00:00:34,581 --> 00:00:44,221 Namesh Nadeemun, Ph.D.: So, what we're sitting in is really cool. I have a company called Compute Exchange. The world's actually the only neutral marketplaces for GPU procurement. 15 00:00:44,601 --> 00:00:50,821 Namesh Nadeemun, Ph.D.: We started in 2024 when there were, I don't know, five new clouds, three hyperscalers. 16 00:00:52,001 --> 00:00:59,461 essentially we sort of will foresee interestingly enough the proliferation of the gpu ecosystem 17 00:00:59,461 --> 00:01:06,041 so you think about stock market today right when you try to buy and sell stocks you can call brokers 18 00:01:06,041 --> 00:01:11,661 obviously you can call a few banks to say hey i want to buy and sell x amount of tesla or actually 19 00:01:11,661 --> 00:01:18,621 spacex right and you can do that or you can transact through your app at niz or nasdaq 20 00:01:19,321 --> 00:01:25,081 doesn't mean you get the best price at nice your nasdaq just because it's more efficient and you 21 00:01:25,081 --> 00:01:29,681 know the liquidity will be there you know the trade will be settled it will be cleared you can 22 00:01:29,681 --> 00:01:34,941 get what you're looking for at the prices you're looking for in a very efficient manner right for 23 00:01:34,941 --> 00:01:42,661 capital markets and resource allocation is about efficiency so in compute world obviously now we 24 00:01:42,661 --> 00:01:48,521 have a huge proliferation which is great we have over 300 new cloud private provider globally we 25 00:01:48,521 --> 00:01:55,241 have a lot of token factories, we have a lot of API routers, which is all good for end customers. 26 00:01:55,681 --> 00:02:01,661 But at the same time, introduce a very interesting variable is how do we make transaction efficient? 27 00:02:02,641 --> 00:02:07,761 Right? Do you want to call 300 salespeople? I mean, it's great to make friends, right? You want 28 00:02:07,761 --> 00:02:11,681 to talk to them on a regular basis. They know a lot of things. But at the same time, when you need 29 00:02:11,681 --> 00:02:17,541 compute in the next 48 hours on reserve contracts, the easiest way is go to an 30 00:02:17,541 --> 00:02:22,161 exchange and then go to the verified compute resources. Just like go to 31 00:02:22,161 --> 00:02:25,861 NASDAQ and IZ to buy stocks. So that's one of the things 32 00:02:25,861 --> 00:02:31,821 ComputeGinge does extremely well is we have this neutral platform. And by design, 33 00:02:32,221 --> 00:02:37,821 we do not own GPUs. Once we start owning GPUs, that would translate to just like 34 00:02:37,821 --> 00:02:39,901 Nasdaq-only stocks, translates to 35 00:02:39,901 --> 00:02:41,421 I have a conflict of interest 36 00:02:41,421 --> 00:02:43,181 with you and with the providers. 37 00:02:43,561 --> 00:02:45,761 I could cherry-pick clients, 38 00:02:46,021 --> 00:02:47,901 I could hold relationships. 39 00:02:48,281 --> 00:02:49,661 Because Compute Exchange 40 00:02:49,661 --> 00:02:51,781 does not own anything by 41 00:02:51,781 --> 00:02:53,761 design, we work really 42 00:02:53,761 --> 00:02:55,661 well with all our providers globally. 43 00:02:56,961 --> 00:02:57,321 And 44 00:02:57,321 --> 00:02:59,621 one very important thing is 45 00:02:59,621 --> 00:03:01,781 we trade 46 00:03:01,781 --> 00:03:03,721 every single transaction individually, 47 00:03:04,361 --> 00:03:05,661 meaning we want to find 48 00:03:05,661 --> 00:03:07,641 you as end-customer the most 49 00:03:07,641 --> 00:03:09,241 suited compute resources. 50 00:03:09,741 --> 00:03:13,101 And we focus on reserve compute, forward contracts, 51 00:03:13,441 --> 00:03:14,381 as well as token packages. 52 00:03:15,921 --> 00:03:17,581 give you some high level. 53 00:03:22,121 --> 00:03:25,581 today, we have over 100 verified providers 54 00:03:27,101 --> 00:03:29,581 over 80,000 GPU in supply. 55 00:03:30,501 --> 00:03:33,441 cover all regions, obviously ex-China. 56 00:03:34,521 --> 00:03:37,421 our commitment is 24 hours turn around. 57 00:03:37,761 --> 00:03:41,821 The difference between us and other so-called brokers 58 00:03:41,821 --> 00:03:43,781 is we do verify GPUs. 59 00:03:43,961 --> 00:03:46,861 If it's existing reserve capacity, 60 00:03:47,141 --> 00:03:50,001 meaning things are actually in a functional stage, 61 00:03:50,201 --> 00:03:52,561 we'll verify the UIDs, the inventories, 62 00:03:52,901 --> 00:03:54,681 the performances we run, 63 00:03:54,881 --> 00:03:58,181 NVIDIA DGX, InferenceX, ML Perf, 64 00:03:58,281 --> 00:04:00,741 make sure you get resources you're promised to get. 65 00:04:01,361 --> 00:04:04,421 So we're the middle sort of trusted platform. 66 00:04:04,881 --> 00:04:08,461 So if it's forward capacity, I'd say you need GPU starting 67 00:04:08,461 --> 00:04:14,121 Jan 1st, 2027, we actually look through the purchase orders, 68 00:04:14,181 --> 00:04:17,941 all the permits they get, make sure we help you do it at your 69 00:04:17,941 --> 00:04:18,661 delicious level. 70 00:04:19,161 --> 00:04:22,341 Now on the flip side, right, if you're a new cloud, your concern 71 00:04:22,341 --> 00:04:24,961 is there's a zillion clients looking for Pimpu. 72 00:04:25,121 --> 00:04:29,541 How do you know who has the ability to pay at a schedule rate? 73 00:04:29,541 --> 00:04:34,881 that's what computers comes in we do KYB KYC of the clients obviously you want 74 00:04:34,881 --> 00:04:39,441 to make sure your clients is the clients using name who they are so we step in 75 00:04:39,441 --> 00:04:42,681 and do that kind of verification just like an exchange that would do and 76 00:04:43,301 --> 00:04:48,341 everything we do in the four markets is actually the precursor to physically 77 00:04:48,341 --> 00:04:53,221 deliver futures also give you some context why am what I do sorry I probably 78 00:04:53,221 --> 00:04:58,301 should say that I start my career as energy option market maker at your 79 00:04:58,301 --> 00:04:59,381 double trading in Chicago. 80 00:05:00,081 --> 00:05:01,281 So I did that for four or five years. 81 00:05:01,641 --> 00:05:02,181 So as an option, 82 00:05:02,321 --> 00:05:03,681 energy, market maker, 83 00:05:03,901 --> 00:05:04,681 everything is very intuitive. 84 00:05:05,001 --> 00:05:06,001 You have WTI, 85 00:05:06,421 --> 00:05:06,901 you have Brent. 86 00:05:07,421 --> 00:05:07,521 Right? 87 00:05:07,601 --> 00:05:10,641 WTI is a physically delivered commodity, 88 00:05:10,821 --> 00:05:11,281 contracts. 89 00:05:11,521 --> 00:05:12,461 Brent is cash settled. 90 00:05:12,741 --> 00:05:15,921 They also have very distinct use cases. 91 00:05:16,261 --> 00:05:18,281 You're looking for hedging 92 00:05:18,281 --> 00:05:20,081 in the financial sense, right? 93 00:05:20,181 --> 00:05:21,481 Your price volatility, 94 00:05:21,821 --> 00:05:22,861 your cost volatility, 95 00:05:22,881 --> 00:05:23,721 you're going to Brent. 96 00:05:24,001 --> 00:05:26,781 You're looking physically procure resources, 97 00:05:26,781 --> 00:05:27,741 use WTI. 98 00:05:28,301 --> 00:05:31,121 So we're creating the WTI at ComputeChange. 99 00:05:35,041 --> 00:05:39,061 So the ways to buy Compute through ComputeChange right now, 100 00:05:39,121 --> 00:05:43,461 you can get reserve contracts, you can get forward contracts on both GPU and token. 101 00:05:43,961 --> 00:05:44,861 Let me explain. 102 00:05:45,241 --> 00:05:48,521 The forward contracts on GPU is very reasonable, right? 103 00:05:48,561 --> 00:05:51,301 You want something starting in the future, nothing available right now. 104 00:05:51,461 --> 00:05:53,541 So that's something we're doing on a regular basis. 105 00:05:54,081 --> 00:05:56,981 Token forward, I think, can be a new-ish concept. 106 00:05:56,981 --> 00:06:02,141 basically can think about as a dedicated deployment on-premise deployment, 107 00:06:02,421 --> 00:06:09,121 right? Similarly you reserve a bare metal GPU clusters, you reserve a cluster but 108 00:06:09,121 --> 00:06:14,661 you have dedicated token deployment on top of that. So you get guaranteed SLA 109 00:06:14,661 --> 00:06:20,061 some of that particular models, you get quantization, position, everything's fixed 110 00:06:20,061 --> 00:06:21,281 for you for a period of time. 111 00:06:22,281 --> 00:06:25,981 So we try to solve the on-demand token API 112 00:06:25,981 --> 00:06:28,321 volatility pricing problem here. 113 00:06:29,421 --> 00:06:31,641 The third is we have a huge market, 114 00:06:31,781 --> 00:06:32,681 open hardware market. 115 00:06:32,961 --> 00:06:33,961 It's really interesting. 116 00:06:34,281 --> 00:06:37,941 The secondary server transactions started last year 117 00:06:37,941 --> 00:06:39,521 when people were just pinning me and 118 00:06:39,581 --> 00:06:45,021 hey, Carmen, I have like 20,000 H100 sitting X data center. 119 00:06:45,021 --> 00:06:46,241 Can you take it away from me? 120 00:06:46,721 --> 00:06:48,161 So I was like, I don't know. 121 00:06:48,281 --> 00:06:49,901 I can't store in my home, obviously. 122 00:06:50,061 --> 00:06:53,841 So we started having the marketplace for secondary server sales. 123 00:06:54,081 --> 00:06:58,761 This has been a very vibrant market for the past, I would say, 12 months. 124 00:06:59,021 --> 00:07:02,581 We cover, again, all servers, even B200. 125 00:07:02,581 --> 00:07:07,361 You see secondary transaction is happening, sometimes trading above MSRP. 126 00:07:07,861 --> 00:07:09,401 It can make sense. 127 00:07:09,561 --> 00:07:12,801 Think about COVID times when secondary car is trading above. 128 00:07:12,981 --> 00:07:14,741 It's a brand new car price. 129 00:07:15,441 --> 00:07:19,201 So we covered the three major layers of compute. 130 00:07:22,581 --> 00:07:27,821 So, reserve GPU, obviously, I think the previous speaker covered extremely well with the terms. 131 00:07:28,161 --> 00:07:32,741 The minimum we do is one node starting at one month, and then we can go all the way 132 00:07:32,741 --> 00:07:34,561 to three, four, five years, right? 133 00:07:34,701 --> 00:07:39,901 It all depends on the availability, the providers, but you get a chance to state your preferences. 134 00:07:41,521 --> 00:07:42,721 We don't do on demand. 135 00:07:45,021 --> 00:07:50,361 and another thing really works really well for compute changes we do provide a flexibility 136 00:07:50,361 --> 00:07:56,481 I'd say if you overcome it in terms of quantity or duration you can sell it back to compute 137 00:07:56,481 --> 00:08:01,441 change right so that's something we come in to do so you don't have to worry too much if you overbought 138 00:08:05,541 --> 00:08:10,901 all right segment life so I will actually do a quick demo later so we have a lot of listings 139 00:08:10,901 --> 00:08:15,781 marketplace listings. You can browse and chat with the providers and figure out the best 140 00:08:15,781 --> 00:08:21,601 delivery mechanisms. You can also RFQ if you don't see anything you liked. We're actually 141 00:08:21,601 --> 00:08:29,061 seeing over a billion RFQs every month. Sounds big, but we all know it's full compute. It's 142 00:08:29,061 --> 00:08:37,181 not that huge, right? But still, you see the activities, which I love is we see a big range 143 00:08:37,181 --> 00:08:38,501 of RFQ requests. 144 00:08:38,681 --> 00:08:40,701 From one node all the way to 145 00:08:40,701 --> 00:08:42,901 20,000 nodes. So our clients 146 00:08:42,901 --> 00:08:45,001 are all different shapes and forms, 147 00:08:45,561 --> 00:08:47,141 different use cases, which is great. 148 00:08:49,661 --> 00:08:50,961 Yeah, so you set timing, 149 00:08:51,121 --> 00:08:52,261 submit, and we route it. 150 00:08:52,581 --> 00:08:54,881 So behind the scene, we have 151 00:08:54,881 --> 00:08:56,961 inventory tracking. So with 152 00:08:56,961 --> 00:08:58,881 over 100 providers globally, we know 153 00:08:58,881 --> 00:09:00,741 who has what, roughly when, right? 154 00:09:00,841 --> 00:09:02,721 The forward capacity. And then let's say 155 00:09:02,721 --> 00:09:04,921 you submit a request in that, hey, I need 156 00:09:04,921 --> 00:09:07,881 30, 300 GPUs, B200, 157 00:09:08,241 --> 00:09:09,241 USEs starting 158 00:09:09,241 --> 00:09:11,281 first. We say 159 00:09:11,281 --> 00:09:13,401 we have three providers. We think 160 00:09:13,401 --> 00:09:15,481 they have those. We'll route it to the three. 161 00:09:15,701 --> 00:09:17,501 They will respond to you through the platforms 162 00:09:17,501 --> 00:09:18,661 and they'll give you 163 00:09:19,481 --> 00:09:21,321 rubrics back. Pricing, 164 00:09:21,561 --> 00:09:23,321 specs, SLAs, we 165 00:09:23,321 --> 00:09:25,181 benchmark them if it's existing 166 00:09:25,181 --> 00:09:27,421 servers and then it's your choice. 167 00:09:27,601 --> 00:09:29,181 Price is not only an indicator. 168 00:09:29,441 --> 00:09:31,481 We believe give you as much transparency 169 00:09:31,481 --> 00:09:33,481 as we can and then you will make a decision. 170 00:09:36,661 --> 00:09:38,261 So I record in one place. 171 00:09:38,401 --> 00:09:39,601 Again, it's rubrics coming back. 172 00:09:39,701 --> 00:09:40,421 You will see everything. 173 00:09:40,861 --> 00:09:42,701 And we introduce you to each other. 174 00:09:42,881 --> 00:09:44,121 We never hold relationships. 175 00:09:44,281 --> 00:09:46,141 We'll make sure you know who you're dealing with. 176 00:09:48,041 --> 00:09:49,901 So by tomorrow's compute, today's price. 177 00:09:49,901 --> 00:09:52,101 So it's a physically procured platform. 178 00:09:54,321 --> 00:09:58,221 This is the used refurbished GPUs. 179 00:09:58,421 --> 00:10:03,601 So again, we have extremely exciting ecosystem participants 180 00:10:03,601 --> 00:10:06,721 in this secondary GPU sales. 181 00:10:06,921 --> 00:10:11,701 We cover from 409Ls, 2B200, AMD, everything. 182 00:10:15,421 --> 00:10:18,621 Inventory is live, and we do connect with you 183 00:10:18,621 --> 00:10:21,161 through all different channels, Slack, email, chat, 184 00:10:21,401 --> 00:10:22,641 however you want to do this. 185 00:10:23,581 --> 00:10:24,921 We track end-to-end. 186 00:10:25,221 --> 00:10:27,661 We actually have scoring for everybody. 187 00:10:27,901 --> 00:10:29,981 We score you, our customers. 188 00:10:30,381 --> 00:10:50,421 We score our providers. You can't see it quite yet, but you know, we'll be really fun. We're going to have end of year celebration for our providers. We're going to give out the best provider in APAC, best provider in Europe, best provider in the US, most responsive providers. So we're going to have a lot of provider awards coming up. Stay tuned. 189 00:10:53,601 --> 00:10:54,441 Verify Network. 190 00:10:54,901 --> 00:10:56,381 So everything's verified, 191 00:10:56,681 --> 00:10:58,561 which is negotiate, state exchange. 192 00:10:58,881 --> 00:11:00,941 So we help in terms of 193 00:11:00,941 --> 00:11:02,901 be the middleman. Sometimes things 194 00:11:02,901 --> 00:11:04,861 are not very clear. We try to make sure 195 00:11:04,861 --> 00:11:06,601 people understand what's the best practices 196 00:11:06,601 --> 00:11:08,241 we have seen in the ecosystem. 197 00:11:11,881 --> 00:11:12,941 I'm going to quickly 198 00:11:12,941 --> 00:11:15,121 show you guys the platform. 199 00:11:15,701 --> 00:11:17,221 I think that's more fun. 200 00:11:24,081 --> 00:11:24,881 And here. 201 00:11:27,421 --> 00:11:28,861 So this is the platform. 202 00:11:29,161 --> 00:11:31,461 You can see a bunch of available inventories. 203 00:11:31,481 --> 00:11:33,041 By the way, anyone can sign up. 204 00:11:33,041 --> 00:11:33,881 It's completely free. 205 00:11:33,921 --> 00:11:35,381 There's no downside using us. 206 00:11:35,541 --> 00:11:36,581 You don't have to buy. 207 00:11:36,661 --> 00:11:37,341 You can browse. 208 00:11:37,681 --> 00:11:41,161 You can request for quotes if you're interested in something 209 00:11:41,161 --> 00:11:41,841 we don't have. 210 00:11:42,221 --> 00:11:44,241 You can start with your vendor type. 211 00:11:44,241 --> 00:11:46,601 Again, we're agnostic of GPUs. 212 00:11:46,741 --> 00:11:47,921 You can select a model. 213 00:11:47,921 --> 00:11:53,981 you can select your deployment type, you can select number of GPUs, you can select your 214 00:11:53,981 --> 00:12:00,681 compute interconnect preferences, CPU platforms, storages, everything you need, and then some 215 00:12:00,681 --> 00:12:05,421 optional items with systems, software stacks, regions. Obviously, we encourage you to select 216 00:12:05,421 --> 00:12:10,961 multiple regions if you open to that. You can add head nodes, tell us your use cases, anything you 217 00:12:10,961 --> 00:12:12,601 want, and then submit RFQ. 218 00:12:13,941 --> 00:12:15,961 So this has been extremely robust. 219 00:12:16,241 --> 00:12:18,661 And then obviously, we want to make sure, 220 00:12:19,361 --> 00:12:21,141 if you have any feedback, let us know. 221 00:12:22,641 --> 00:12:25,001 So I'm going to pause on the Compute Change side. 222 00:12:25,941 --> 00:12:29,181 I think I have some time left, which I'd love to show you 223 00:12:29,731 --> 00:12:32,421 some of the numbers we see in terms of term structure. 224 00:12:34,301 --> 00:12:35,521 Also, context. 225 00:12:35,881 --> 00:12:37,221 I'm CEO for Compute Change. 226 00:12:37,221 --> 00:12:40,021 I'm also CEO for another company called SiliconData. 227 00:12:40,841 --> 00:12:42,261 I'm a founder CEO for SiliconData, 228 00:12:42,461 --> 00:12:45,401 which is the Bloomberg for compute. 229 00:12:45,681 --> 00:12:49,981 So we provide indices for CME to settle their futures on, 230 00:12:50,081 --> 00:12:51,461 which will be happening in a few weeks. 231 00:12:51,961 --> 00:12:53,621 I'm very excited about this. 232 00:12:54,161 --> 00:12:57,261 So the ones that are going to start trading at CME 233 00:12:57,261 --> 00:13:00,321 will be the H100 NeoCloud on-demand rate, 234 00:13:00,501 --> 00:13:03,081 as well as B200 prices. 235 00:13:04,861 --> 00:13:07,661 What I want to show you is implied forward curve. 236 00:13:08,501 --> 00:13:09,961 so as I said 237 00:13:09,961 --> 00:13:11,981 compute change would do a lot of forward capacities 238 00:13:11,981 --> 00:13:13,941 so essentially a lot of 239 00:13:13,941 --> 00:13:15,801 longer term contracts is going to be very 240 00:13:15,801 --> 00:13:17,401 critical you think about 241 00:13:17,401 --> 00:13:19,341 even in your cloud or your 242 00:13:19,341 --> 00:13:21,761 consumers let me just make it larger 243 00:13:23,341 --> 00:13:23,901 so 244 00:13:23,901 --> 00:13:26,041 the yellow line was last year 245 00:13:26,041 --> 00:13:27,781 right the x 246 00:13:27,781 --> 00:13:29,501 horizontal line is the duration 247 00:13:30,301 --> 00:13:31,921 and the dollar amount 248 00:13:31,921 --> 00:13:33,621 is the y exist so 249 00:13:33,621 --> 00:13:35,721 last year was complete downward 250 00:13:35,721 --> 00:13:37,801 or sloping curve from the yellow line, right? 251 00:13:37,921 --> 00:13:39,621 Meaning the longer term contract you signed, 252 00:13:39,801 --> 00:13:42,921 it cheaper, you know, was per chip-up power. 253 00:13:43,421 --> 00:13:45,741 And this year, starting early this year, 254 00:13:45,941 --> 00:13:48,501 the whole curve shifted up and became contangled. 255 00:13:48,501 --> 00:13:50,541 If you see the red line, right? 256 00:13:50,881 --> 00:13:53,901 So it translates to people not getting a discount, 257 00:13:54,681 --> 00:13:56,921 enough discount for a longer term contract, 258 00:13:57,701 --> 00:14:00,641 implies that people assume the price is going to rise down the line. 259 00:14:01,161 --> 00:14:03,741 And now you see the price, the whole term, 260 00:14:03,801 --> 00:14:05,641 keeps shifting up but got flattened. 261 00:14:05,721 --> 00:14:12,021 So meaning people will now either get penalized or get awarded by a non-contract contract. 262 00:14:13,181 --> 00:14:15,461 This is reserve contract we observe. 263 00:14:15,861 --> 00:14:20,541 And if you look at implied floor rates, this is implied floor rates, right? 264 00:14:20,601 --> 00:14:22,321 Because we don't have a future trading. 265 00:14:22,601 --> 00:14:25,621 So this is calculated based on our term structure. 266 00:14:26,581 --> 00:14:29,121 And we use similar methodology at Treasury Futures Curve. 267 00:14:29,121 --> 00:14:36,061 So you can see a market consensus view is the price could go up in the future, next 36 months. 268 00:14:37,041 --> 00:14:39,821 Again, market consensus doesn't mean it's right. 269 00:14:41,401 --> 00:14:47,141 If you look at B200, again, last year was contangled, and this year the whole curve shifted up. 270 00:14:47,481 --> 00:14:52,141 Every single term is more expensive, and it's got flattened. 271 00:14:52,381 --> 00:14:55,261 In platform rates, similarly, people think the price is going to go up. 272 00:14:56,041 --> 00:15:04,381 I want to point this out, the term structure out, is this shows you that GPU behaves just like every commodity, 273 00:15:04,721 --> 00:15:10,021 have a very clear term structure risks, which data futures are excellent at hedging. 274 00:15:10,361 --> 00:15:14,481 So we have seen a lot of block trading happening around the term structure. 275 00:15:14,721 --> 00:15:16,121 So you think about this, right? 276 00:15:16,121 --> 00:15:21,761 If you have servers on your balance sheet, you have financing obligation for the next five, six years, 277 00:15:22,341 --> 00:15:24,961 and you have reserve contracts for first three. 278 00:15:25,261 --> 00:15:28,961 Then they exposed essentially year four or five or six. 279 00:15:29,361 --> 00:15:34,781 So you want to hedge that risk out by entering swaps or block trading. 280 00:15:36,041 --> 00:15:36,421 those are things. 281 00:15:36,581 --> 00:15:40,881 Or there are trades happening even for the first three years, 282 00:15:40,881 --> 00:15:42,641 which you have reserve contracts on. 283 00:15:42,861 --> 00:15:46,181 What if the reserve contract defaulted? 284 00:15:46,341 --> 00:15:50,361 What's your guarantee from some of the players? 285 00:15:50,661 --> 00:15:52,741 So we saw block trading happening around indices. 286 00:15:53,141 --> 00:15:54,321 Trade has a floating rate. 287 00:15:59,541 --> 00:16:05,641 This chart actually is being used differently by the NVIDIA team. 288 00:16:08,241 --> 00:16:15,421 In NVIDIA's latest September investor day deck, they set us with only data provider 289 00:16:15,421 --> 00:16:16,901 that actually cited in their deck. 290 00:16:18,281 --> 00:16:18,901 is very interesting. 291 00:16:19,481 --> 00:16:24,121 SiliconData becomes the appraisal for a few banks when they have GPU servers on their 292 00:16:24,121 --> 00:16:24,641 balance sheet. 293 00:16:26,341 --> 00:16:27,981 everything you see here 294 00:16:27,981 --> 00:16:29,401 is a forward looking view 295 00:16:29,401 --> 00:16:30,941 so discount the cash flow 296 00:16:31,861 --> 00:16:33,761 so as I said we have a term structure 297 00:16:33,761 --> 00:16:35,461 so assume A100s 298 00:16:36,141 --> 00:16:37,881 A100s have been around for 6 years 299 00:16:37,881 --> 00:16:40,101 if today you sign a 3 year long 300 00:16:40,101 --> 00:16:41,581 lease on A100s 301 00:16:41,581 --> 00:16:43,781 and you have a rate, if you discount 302 00:16:43,781 --> 00:16:46,041 the cash back to time zero 303 00:16:46,041 --> 00:16:47,821 you have how much 304 00:16:47,821 --> 00:16:48,621 the asset is worth 305 00:16:49,981 --> 00:16:51,681 obviously there's a lot of things 306 00:16:51,681 --> 00:16:53,661 baked in, utilization rate 307 00:16:53,661 --> 00:16:55,381 What is your cost? 308 00:16:55,581 --> 00:16:58,901 There's a bunch of assumptions which we're pretty transparent about. 309 00:16:59,541 --> 00:17:03,561 We actually calculate the residual value for normalized value, obviously, 310 00:17:03,781 --> 00:17:07,621 across all A100, H100, B200 servers globally. 311 00:17:07,981 --> 00:17:11,821 And then we'll compare that with the straight line depreciation, 312 00:17:12,021 --> 00:17:14,381 which is everybody using the 5 yen depreciation. 313 00:17:14,821 --> 00:17:16,661 What's interesting is the A100, right? 314 00:17:16,781 --> 00:17:19,141 Even though it is downward sloping, you know, 315 00:17:19,221 --> 00:17:20,881 it means things are depreciating, 316 00:17:20,881 --> 00:17:24,941 but it's above the accounting depreciation curve, straight line. 317 00:17:25,521 --> 00:17:29,401 And H100, obviously, it's going bananas now. 318 00:17:29,801 --> 00:17:30,881 The price actually went up. 319 00:17:31,301 --> 00:17:35,961 My analogy will be just like secondary cars during COVID time. 320 00:17:36,261 --> 00:17:37,561 The price went up, right? 321 00:17:38,101 --> 00:17:41,861 And B200, obviously, went above the MSRP by this point. 322 00:17:42,841 --> 00:17:45,941 So this gives you some views about what's going on 323 00:17:45,941 --> 00:17:47,041 on the residual value side. 324 00:17:47,341 --> 00:17:50,581 I think I'm out of time, but feel free to grab me. 325 00:17:50,581 --> 00:17:52,621 Carmen, CLI 326 00:17:52,621 --> 00:17:54,921 at computechurch.com 327 00:17:54,921 --> 00:17:56,061 CLI stick in there.com 328 00:17:56,061 --> 00:17:57,321 feel free to get me on Twitter 329 00:17:57,321 --> 00:17:59,221 Carmen Lee is my Twitter handle 330 00:17:59,221 --> 00:18:01,021 just Carmen L.I. 331 00:18:01,501 --> 00:18:02,821 That's it. Thank you.