Appendix A - Procurement Challenges of High-End GPUs

The GPU procurement process is challenging due to stringent KYC requirements from a few NVIDIA-certified OEMs (E.g., SuperMicro, HPE, Dell). These challenges can be grouped into three key areas: volume purchase capability, payment guarantees, and validated deployment abilities.

1. OEMs prefer buyers who can commit to large-volume purchases to optimize their production and logistics. This preference makes it difficult for smaller companies or startups that can't afford significant initial investments.

2. OEMs require strong financial assurances due to the high value of GPUs. Companies must demonstrate financial stability and a reliable payment history, which can be a hurdle for new businesses without an established credit record.

3. Manufacturers seek buyers with proven capabilities to deploy GPUs effectively. This includes having access to the necessary data center infrastructure and technical expertise to integrate and use the GPUs efficiently. Buyers often need a track record of successful deployments and sometimes third-party validations.

4. Overcoming these challenges involves building a solid reputation, maintaining transparent communication, and establishing strong relationships with OEMs. This can lead to better terms, early access to new technologies, and more flexible procurement options.