Interest in ChatGPT and similar AI applications has pushed the price of the Nvidia H100 up to around $40,000. Cryptocurrency mining is experiencing a lull as Ethereum prepares for its upgrade.
The emergence of ChatGPT and similar AI tools has sharply increased the demand for Nvidia GPUs. Both prominent individuals in the tech industry, such as John Carmack, and the general public have noted inflated prices.
The price of the Nvidia H100 is on the rise
It has Nvidia’s H100 deep learning GPU more to $40,000 per unit, with some sellers even offering them for a few thousand dollars. Such specialized application-focused units are already in the thousands of dollars range, so the fact that they have increased is even more noticeable to the demand. The retail price of the H100 was under $35,000 before.
It should be noted that the units in the screenshot from eBay below are for sale at prices between $42,672 and $45,000, but BeInCrypto was unable to verify any completed sales at those prices.
The use of devices such as the H100 to build language learning models and their applications in artificial intelligence has made them a highly sought after commodity over the years. The computational power required by these models is high, hence the demand for hardware like Nvidia.
It is likely that companies will produce new types of devices to meet the demand. The technology industry has already set 2023 to be one of the most exciting years, and the potential of new ChatGPT models is really exciting the public.
ChatGPT and AI cause the H100 to be in high demand
The emergence of new AI applications, especially ChatGPT and its alternatives, has predictably led to an increase in related devices. Major cloud computing players now an offer H100 series, also known as Hopper GPUs, to keep up with the growing demand. The H100 is the most powerful AI GPU, according to Nvidia. Amazon, Microsoft and Oracle will offer cloud support for the highly sought after GPUs.
ChatGPT itself was been trained on Nvidia GPUs. In fact, it used up to 10,000 GPUs for its training model. The development of the space indicates that generative AI will drive demand in the coming years.
Cryptocurrency mining hype cools after ETH switch to PoS
While the AI industry has been taking off, the crypto mining industry is experiencing something of a slump. The hype for this market has slowed down. The asset class took a huge hit last year after Ethereum switched to the Proof of Stake mechanism.
The upcoming Ethereum upgrade, which will enable stakeholders to dump ETH, has fully captured the attention of investors. All discussions focus on this now; However, with Bitcoin research, it may be the case that the conversation returns to mining in the near future.
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