[wordpad]

If your competitor refreshes their cards and you dont, they will win on margin.

You kind of have to.

[lazide]

Not necessarily if you count capital costs vs operating costs/margins.

Replacing cars every 3 years vs a couple % in efficiency is not an obvious trade off. Especially if you can do it in 5 years instead of 3.

[zozbot234]

You can sell the old, less efficient GPUs to folks who will be running them with markedly lower duty cycles (so, less emphasis on direct operational costs), e.g. for on-prem inference or even just typical workstation/consumer use. It ends up being a win-win trade.

[iancmceachern]

You highlight the exact dilemma.

Company A has taxis that are 5 percent less efficient and for the reasons you stated doesn't want to upgrade.

Company B just bought new taxis, and they are undercutting company A by 5 percent while paying their drivers the same.

Company A is no longer competitive.