Alibaba Says Older Nvidia GPUs Are Still Going Strong - Alibaba Gr Hldgs (NYSE:BABA), ALIBABA GROUP HOLDI

One of the most revealing comments from Alibaba Group Holding Ltd.’s (NYSE:BABA) (OTC:BABAF) fiscal first quarter earnings call wasn’t about revenue or artificial intelligence demand.

Instead, it was about the staying power of Nvidia Corp.‘s (NASDAQ:NVDA) older AI chips, with management saying GPUs purchased as far back as 2018 are still operating at full capacity across its AI infrastructure.

Alibaba: Older Nvidia GPUs Are Still Fully Utilized

Discussing the economics of the company’s AI investments, Chief Financial Officer Toby Xu said Alibaba expects its AI assets to generate “very positive and robust cash flow” after a three-year payback period.

To illustrate the point, Xu cited the company’s existing GPU fleet, saying “an A100 purchased in 2020 or a V100 purchased in 2018 even today are still running at full capacity.”