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		victoro on Jan 29, 2023 \| parent \| context \| favorite \| on: Higher rates will lead to the next generation of g... Why is the marginal cost of a KWH the main inhibitor to rapid scaling? Wouldn't the main inhibitor be the marginal cost of additional capacity? To put it another way, if my solar panel can currently support 10 GPUs running all day but I need to run 11, don't I need to add another solar panel?

ianai on Jan 29, 2023 [–]

Marginal cost is the derivative of the cost function. Fixed costs drop out of the derivative. You’re confusing amortizing a fixed cost with marginal cost.

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