H100 GPU Rental Prices Drop 70% Due to Open-Source Models and Market Oversupply

The rental prices of Nvidia’s H100 GPU have drastically decreased by around 70%, dropping from $8-$16 per hour to $1-$2 per hour. This decline is mainly due to a significant increase in supply and the growing popularity of open-source AI models, which reduce the need for new AI model development. Initially, the H100’s high performance caused a surge in demand and rental prices, as companies rushed to train AI models to attract investors. However, as more competitors entered the market, oversupply led to a price drop. Companies that pre-booked computational resources are now offloading excess capacity, adding to the surplus. Major AI developers have shifted from public cloud platforms to private data centers, and the introduction of cheaper alternative GPUs from other vendors like AMD and Intel has further driven down prices. The market dynamics now favor fine-tuning existing models over developing new ones, contributing to the decreased demand for high-performance GPUs like the H100.