Tomasz Tunguz · 21 October 2026 · Industry Analysis

The GPU Revenue Ladder

Tomasz Tunguz, MD @ Theory

GPU inference economics show healthy unit economics at scale—SpaceX achieves $2.44/card-hour realized revenue with <1-year paybacks—but face pressure from token price deflation outpacing hardware costs and emerging on-device inference reducing cloud demand.

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Topics: AI Infrastructure · Semiconductors

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