More Tales From Nvidia – H200 Rental Prices Fall and Much More… (Issue #198!)
Doug Kass
on
May 29, 2026
Two from Thierry:
The price to rent an Nvidia H200 just collapsed from $7/hr to $4/hr in three weeks.
— Thierry from arvy 🇨🇠(@ThierryBorgeat) May 28, 2026
A -40% drop in the cost of the single most strategic asset in tech.
When the underlying commodity that powers your entire thesis loses 40% of its value in a month, that usually means one of two… https://t.co/2IwKnByYo3 pic.twitter.com/D7p0rgMyAL
Uber burned through its entire 2026 AI budget in four months.
— Thierry from arvy 🇨🇠(@ThierryBorgeat) May 28, 2026
Not four quarters. Four months.
The COO, Andrew Macdonald, said it out loud: AI costs are getting "harder to justify."
This is the same Uber that finally turned profitable after 15 years of burning cash. The company… https://t.co/2IwKnByYo3 pic.twitter.com/8lfZTs8ZTD
Relatedly:
THIS IS INSANE🚨
— Bull Theory (@BullTheoryio) May 29, 2026
An enterprise client reportedly racked up a $500,000,000 bill on Anthropic’s Claude AI in just 30 days after failing to set any usage limits.
No spending caps, no oversight, and no token limits.
Employees massively increased usage of AI coding agents and… pic.twitter.com/aUtK9KgKy6
Completely insane! https://t.co/KUicxw1hu6 pic.twitter.com/X9otLFgYVq
— Ed Zitron (@edzitron) May 28, 2026
Two from Gary Marcus:
just imagine what will happen to the economy and people’s retirement funds if these projections from FT are correct.
— Gary Marcus, MIT PhD and NYU Professor Emeritus (@GaryMarcus) May 28, 2026
brace for bailouts. https://t.co/c71ZG1E1l1
Hot take on what comes next, after the sudden decline of tokenmaxxing:
— Gary Marcus, MIT PhD and NYU Professor Emeritus (@GaryMarcus) May 29, 2026
– OpenAI will struggle
– with the decline of tokenmaxxing Anthropic will struggle (aside from this quarter) to make a profit
– Google will catch up to Anthropic
– some Chinese companies might, too
– LLMs…
And here’s more:
The fact that Amazon succumbed to AI psychosis and had a leaderboard based on token credits in the first place tells you all you need to know about how horrible the management and capital allocation is at $amazn https://t.co/CbFytGgqcL
— Ross Hendricks (@Ross__Hendricks) May 29, 2026
The Big 5 hyperscalers now need to make a combined ADDITIONAL $5 trillion a year of revenue just to see a return on their Ai investment.
— Roger (@rdd147) May 28, 2026
The current revenues are combined at $1.5 trillion. Projections indicate this would lead to an approximate 20% cost to businesses and increase… pic.twitter.com/VM9KKzdONb
AI is truly eating the US economy. pic.twitter.com/BeN23Trw7B
— Tracy Alloway (@tracyalloway) May 28, 2026
Pimco Warns AI Data Centers Are Flooding Junk Bonds
— kristen shaughnessy (@kshaughnessy2) May 29, 2026
Pimco cautions that while many deals look safe and cheap, a big chunk are risky and stressed.
Bloomberg reports data center borrowing has exploded from nothing to nearly 3% of the junk bond market in just one year, and it’s… pic.twitter.com/T0umYxxkgF
Positions: None.
- Category: Daily Diary
Posted by Doug Kass
Doug Kass is a world-renowned hedge fund manager with decades of experience and success navigating through some of the most turbulent periods in market history. He is known for his time-tested analytical skills and ability to look past the current noise and herd mentality. On TheStreet Pro, Kass provides frequent market commentary and investing ideas for active investors throughout each trading day in Doug’s Daily Diary. He also serves as president of Seabreeze Partners Management Inc. Previously, he served as a senior manager at Omega Advisors, a $6 billion investment partnership. He co-authored a book with Ralph Nader and the Center for the Study of Responsive Law called “Citibank: The Ralph Nader Report” and can be found as a guest host on CNBC's "Squawk Box." A Note from Doug: Current strategies and actionable trade ideas -- all on one dynamic platform built exclusively for active trades. From sudden sell-offs to sudden spikes, TheStreet Pro arms you with crucial analysis -- at a rapid fire, professional pace -- to help you make sound trading decisions -- every day, every hour, and every minute. Join me and my team of professional traders for unique perspectives and breakthrough investment opportunities.