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The week's question
In December 2024, in the thread "Re: BRK: Why Not XOM?", BreckHutHigh asked the members: "What about the long road trips with kids?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
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Author: BreckHutHigh ⎊  😊 😞
Number: of 21943 
Subject: Re: Jassy on AI infrastructure economics
Date: 07/31/26 4:50 PM
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This is the key point, if you believe it then the investments make sense; if the servers have a useful life of 3-4 years the model is MUCH different."

No doubt.

On the flip side, maybe the hyperscalers estimated 5-6 useful physical life will get extended:

Jassy said as much:

"For servers and networking equipment, on average, it takes a little less than 3 years to break even on that investment. The servers currently have a useful life of at least 5 to 6 years, and most of our AI capacity these days is being contracted for at least five-year terms. That means that we're driving significant free cash flow on the servers and networking equipment in the 2-3 years after we break even. It's also worth noting that AWS has a strong track record of pulling forward break evens on server equipment, where we've already made meaningful progress, and finding ways to extend the useful life of this equipment, without impacting the customer experience."

NVDA's A100 GPUs were first deployed in late 2020 to early 2026 - 5-6 years ago. People are still paying to rent the A100s, with rental rate for the A100s rising recently, along with the B200 and H100.
semianalysis.com - GPU pricing

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This community has written 21,448 posts about Berkshire Hathaway. The article-length ones it recommended most:
BRK: Why Not XOM? · 62 recs · 2024
Second quarter comments · 60 recs · 2023
Berkshire's Profit Contributors · 57 recs · 2023
Summary of 2Q 2026 · 54 recs · 2026
3Q Summary · 53 recs · 2024
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