alt Hacker NewsThese companies are clearly calling things that are R&D that aren't R&D.
If you're building a model that lasts a few months before it's no longer the most current one, and maybe a year before it's completely unusable by anybody, then that should just be COGS.
Doing that, however, would betray the real problem with this business model.
Replies
lokar • today at 12:44 AM
Calling it capex with an appropriate depreciation schedule is more appropriate.
They are also likely overestimating the useful lifespan of the hardware. They keep extending the number of years on the GPUs to make the accounting look better.