NVIDIA’s Vera Rubin Racks Are the Costliest to Date, but AI Giants Are Willing to Pay Anything to Avoid Becoming the Next Yahoo

NVIDIA’s Vera Rubin AI racks are becoming the next ‘prized possessions’, but at the same time, pricing is expected to increase significantly from Blackwell.

NVIDIA’s Vera Rubin Is Reported to Cost Up To $7 Million Per Rack, yet the Demand Consistently Grows

When we talk about the complexity of NVIDIA’s AI portfolio, it is without a doubt that Vera Rubin is one of the company’s most sophisticated offerings, featuring seven newly-designed chips that target almost every element of the rack infrastructure. You are looking at the Vera CPU, the Rubin GPU, an enhanced NVLink 6 chip, and much more, which implies that the BOM for the Rubin rack would likely be much higher than Blackwell Ultra’s. A report by DigiTimes has disclosed that a single Rubin rack could cost between $3 million and $7 million.

Now everyone’s competing to see who has the most cash, because if a company doesn’t keep up with this technological awakening, it might disappear like Yahoo! during the dot-com bubble. This is war, and the winner takes all.

– DigiTimes

The analogy with Yahoo is surely interesting, and we’ll come to that in a bit. One bit mentioned in the report to look at is that, for server manufacturers like Foxconn and Quanta, profit margins have diluted since rack-scale deployment became prevalent, mainly because it is claimed customers aren’t willing to pay standard margins as rack costs rise. If we assume that Rubin NVL72 costs around $3 million, this…