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Why Cloud Contracts Now Include GPU Decommissioning Fees
Episode 76 of The Cloud Business Podcast digs into a new clause appearing in hyperscaler contracts: GPU decommissioning fees. When an AI startup outgrows its reserved NVIDIA H100 cluster or goes under, exiting the hardware commitment can trigger a charge of up to 25 percent of remaining value. Lucas and Luna examine a real-world case: a generative-AI company that reserved 512 H100s for twelve months, then got acquired month nine. The decommissioning fee — $1.2 million — became a negotiating flashpoint in the acquisition terms. They break down how decommissioning fees are calculated (hardware…
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