Thursday, January 22, 2026

A flood of used GPUs

It seems to me that we will soon be inundated with a large number of used GPUs. I'm not sure what we are going to do with them, but I suspect that some creative people will devise uses for them.

My idea starts with the data centers used for AI. These are large facilities with lots (thousands, probably tens of thousands) of servers each with one or more GPU. Some are being built as I write this, some have been just recently "turned on", and some are getting old (in terms of technology).

GPUs don't last forever. They suffer from two forms of obsolescence. The first is wear. While GPU chips last quite a long time, other parts of the GPU wear more quickly. Fan motors, capacitors, and other discrete electronic components degrade after significant use.

The second form is capacity, or more specifically the availability of a newer, faster, more efficient GPU. We've seen this in the PC gaming market, with new GPUs announced every year. I myself have benefitted from this phenomenon. A while back, when living in an apartment in Oregon, someone else "donated" an old PC to the recycling area. The PC was mostly complete, with case, power supply, motherboard, memory, and -- interestingly -- a GPU. (The former owner had removed all disk drives, but left everything else.)

GPUs are not cheap, but the former owner thought that the GPU in this PC had little value. I estimate that the former owner had used this PC for about five years.

So let's take that five year figure and apply it to data centers, specifically data centers for AI, because that use lots of GPUs.

What happens after a data center has been online for five years? Technology advances, and there will be newer, faster, more efficient GPUs on the market. The owners of the data center will look at those new GPUs with envy. (Especially the "more efficient" aspect of the new GPUs.)

I predict that some data centers will see their older GPUs replaced. (Perhaps the entire server, not just the GPU.) Which means that the big tech owners of data centers will have a large pile of used GPUs (or servers) sitting on the side.

What to do with those old GPUs? One could recycle them, and I suspect that many will be, but that costs money. They could be buried in a landfill, but that costs money too.

Which leaves another option: sell them.

Selling used GPUs is tricky. You cannot label them as new (not legally). But I suspect that there will be a market for used, recent-model GPUs. We might see a large number of them on the market, which means the price will be relatively low.

Buying used GPUs is also tricky. Used GPUs may fail quickly, and there is usually no warranty.

If you have been pondering a project that uses a GPU (or a number of GPUs), this may be your opportunity to start it.