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Profit per GPU for a GPU cloud in Singapore
The prompt
A GPU cloud (a neocloud) in Singapore rents out AI GPUs by the hour and reports in USD. Each GPU costs USD 35,000 all in, including its share of the server and network, and is written off over five years. It sells GPU time at USD 2.50 an hour and expects the GPUs to be busy 70 percent of the 8,760 hours in a year. Each GPU draws 1.25 kW including cooling, at USD 0.10 per kWh, around the clock. Colocation rent and support cost USD 2,000 per GPU a year. What is yearly profit per GPU before interest and tax, and at what utilisation does it break even? (Figures are illustrative.)
Your interviewer will share data as you ask for it. Ask clarifying questions, state a hypothesis, then lay out your structure out loud before you calculate.
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