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[–] 50 points 10 months ago (4 children)

The RAM manufactures would normally consider increasing production in the face of increased demand, but they all know it’s a massive bubble so don’t want to, resulting in increased process until this all plays out.

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  • [–] 20 points 10 months ago (1 child)

    Yep this 100%. They are getting a windfall from the AI idiots that will pay a premium for it while they can without overextending themselves to do so but it means we lose. That how you know this is a bubble. The only good thing is they are smart enough to not overextend themselves so they won't be impacted when the bubble does pop.

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  • [–] 12 points 10 months ago

    You're wrong.

    Most AI datacenter orders were NOT paid premium - manufacturing simply shifted from consumer products to industrial, at the same cost essentially.

    You know who's paying premium?

    The average consumer who needs to buy RAM right now, because thanks to the supply drop - both already existing and foreshadowed - the price of the already available units skyrocketed.

    Meanwhile the DRAM manufacturers don't care because they're getting paid the exact same amount regardless if they're producing for consumers or industrial clients.

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  • [–] 2 points 10 months ago

    A big thing is that a high end ram factory has a crazy price-tag, I'd say between 100 million and one billion Euro, and it takes years to build. Noway to step up production overnight at no cost. And when we talk about big money like that, investor get pretty conservative

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  • [–] 46 points 10 months ago (7 children)

    The AI corps building the datacenters pretty much all have blank checks and want to be the biggest.

    So the other corps that make chips, will always focus on what's most profitable, which is what the AI centers use.

    For it to be "worth it" to produce any consumer level tech, they have to raise the price to justify not just making the AI chips

    So it's not a conspiracy that's raising prices, it's capitalism working as intended, and to fix it would have to fix the focus on profits and replace it with fulfilling needs of the people. Which is pretty much the opposite of capitalism...

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  • [–] 15 points 10 months ago (6 children)

    Capitalism needs to be abolished its basically kill everyone if you can make money from it. Not like the parasites wouldnt genuinely risk everyones lives.

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  • [–] 11 points 10 months ago (4 children)

    Capitalism is like any other vice.

    In moderation it's fine, often even beneficial.

    But if it's the sole focus you're fucked. We're not responsible cocaine users who want to stay up dancing every other weekend, we're full blown crackheads on capitalism.

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  • [–] 5 points 10 months ago (3 children)

    Not at all when the bottom line replaces humanities interest the economy becomes a parasite to feed an endless endeavour at the sacrifice of everything around it.

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  • [–] 4 points 10 months ago (2 children)

    when the bottom line replaces humanities interest

    And there's room for some capitalism before that point...

    Like, UBI with stores where you pay for goods is still capitalism to some degree, if capital is involved at all, that's capitalism.

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  • [–] 14 points 10 months ago

    No. We're just so broken as a society that we allow rich assholes to destroy markets for regular people by betting on overhyped bullshit.

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  • [–] 7 points 10 months ago* (2 children)

    From people? No.

    From AI. AI companies have seemingly infinite money (not really but investor sentiment is huge and investors are happy giving more and more money to AI). And banks are willing to lend money to AI. And there's new financial instruments (special purpose vehicle) allowing even more money to come out of investors.

    This ends after AI runs out of money. But they are funded by the biggest tech bros with $Trillions in valuation.

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  • [–] 4 points 10 months ago (1 child)

    Who are investors and where is their money from?

    If it's from investment funds, then I've got bad news for all of you, it is your money as well.

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  • [–] 4 points 10 months ago

    Well that's the funny part now isn't it?

    Increasingly, the investors are other AI companies. NVidia, Microsoft, Facebook. Be it directly (ie: Microsoft buying half of OpenAI), or indirectly (Special Purpose Vehicle creates a new Data center and Facebook pays to be an owner of that and then the Datacenter pays Facebook for AI or some shit).

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  • [–] 7 points 10 months ago* (2 children)

    Certain companies are buying up all the stock because it stops individuals from building their own AI capable rig and forces them and businesses into subscription models.

    They are using copyright laws in the same way and lobbying so building new models legally costs millions of dollars and open sourcing stops being viable.

    The biggest threat to the AI bubble is people running the same services out of their home with open source alternatives for a fraction of the price.

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  • [–] 2 points 10 months ago (1 child)

    This seems like quite the conspiracy theory given the much more simple motivation that AI gives them tons of money right now and it requires ram

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  • [–] 4 points 10 months ago*

    I'd give it less credence if it wasn't for Altman trying to buy the wafers themselves.

    I think they panicked when China and Meta started releasing multi million models for free. Stifling hardware is the only way they can recoup their investments.

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  • [–] 1 point 10 months ago* (last edited 10 months ago)

    They™ stopped hoarding eggs, and now They™ are hoarding RAM instead.

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  • [–] 2 points 10 months ago

    What is happening to RAM now is what happened to the housing market a few decades ago. It is unlikely it will ever recover because Capitalism demands that whatever makes the most profit, no matter how harmful or unethical, is what must be done.

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  • [–] 1 point 10 months ago

    It's not "manufacturered", so it's not conspiracy. But it's from unreasonable and unacceptable high demand.

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