Would you though? If/when the AI bubble pops and the buildout of data centres either stops or plateaus then they'd suddenly be sitting in a vastly oversaturated market and struggle to make it to the end of the year.
New fabs will be operational in a while, which is too big of a risk to take in these times.
All that bubble popping will do is wipe out some investor's money. Everything else will stay and become more and more important.
But of course, it is more profitable to sell one item for $1000 than it is to sell ten items for $100 each. And even if a competitor shows up, you can just price dump with all the extra money you already made until that competitor goes away.
Considering the profits they've made this year, on average they still wouldn't do too bad. SK Hynix employees got almost $500k for example, I can live on that for a few years. Companies are often also legally required to compete with each other.
But they are scaling up the production, they just conveniently did it a bit late. I also fear if/when the bubble pops, they'll quickly reduce the production to ensure prices stay high. I fear Nvidia could do the same. I think it'll be hard for all of them to go back to a world where they're paid way less per component, so instead of accepting that, they can reduce the supply and keep the prices high. Only antitrust regulators could intervene to stop that.
Many people expect prices to go down after the bubble pops, but it may not happen as much as we would want to.
Good god the internet is so sensitive nowadays
[0] https://news.ycombinator.com/item?id=50400515 for longer comment on that
And "if all current AI users" is a strawman, people using free chatgpt once or twice a day are not going to buy RAM to run own LLMs.
Ah yes Sam Altman is not a real villain despite OpenAI locking up 40% of global DRAM supply.
If a customer ask me to get all my butchery stock for a year, it will make thousands of client unhappy and will make one client happy, so I'll simply refuse.
This is not how business is supposed to be, the world is not supposed to be a B2B chaos.
I know how the business is done "supply demand" bla bla. That does not make it ethical one bit.
If you look outside the tech bro / stock bro / tech worker circles and into the mass left wing populace everyone HATES ai and ai data centers... the Altmans, the Amodeis, the Huangs, they are not the devil himself levels just yet (cough, Musk, cough), but they are climbing up there.
People's jobs being taken (and especially entry/junior jobs, you know, the ones young people, who voted massively blue, need to get started in life), data centers increasing their electric bills or polluting the air with gigawatt level gas turbines (or both), consumer electronics prices rocketing up (~400% increases YoY in RAM and SSD prices) just so the corporate capitalist class can hoard millions of gpus in warehouses.
I mean, if the democrat politicians getting into power keep their promises and step on AI buildout's neck, it could be lights out for the AI bros.
ChatGPT is one of the most used websites in the world. Compared to e.g. Facebook you are not "forced" to use it (because of friends or whatnot) so it's all voluntary usage. There is real demand for AI usage, that's why RAM and GPU prices are skyrocketing, not because of some evil conspiracy.
I don't see this, no. I think HN serves as a sort of Rorschach test for the reader. I get a center-libertarian vibe from HN, definitely not left wing.
I also think while there's a ton of AI articles, there are also very vocal people against it. The sentiment is not universally "AI booster" here, it's a mix.
1) boom and bust cycle in memory industry is a repeated problem
2) companies are not obligated to scale up
> and is being taken out of context
no it is not - Altman is lying by omission by implicating that various important costs are not real
hopefully china does it and hynix burns in hell
Obligatory: "we're curing cancer r-right?" No Nat we're making slop videos with it.
where is the proof?
https://en.wikipedia.org/wiki/DRAM_industry_price_fixing
To date, five manufacturers have pleaded guilty to their involvement in an international price-fixing conspiracy between July 1, 1998, and June 15, 2002, including Hynix, Infineon, Micron Technology, Samsung, and Elpida.[3]
Simple as that.
If I said all donuts are spaceships, readers are not obligated to go and google it.
* Participating in meetings, conversations, and communications in the United States and elsewhere to discuss the prices of DRAM to be sold to certain customers;
* Agreeing, during those meetings, conversations, and communications, to charge prices of DRAM at certain levels to be sold to certain customers;
* Issuing price quotations in accordance with the agreements reached; and
* Exchanging information on sales of DRAM to certain customers, for the purpose of monitoring and enforcing adherence to the agreed-upon prices.
* Under the plea agreement which must be approved by the court, Hynix has agreed to cooperate with the government in its ongoing investigation of other DRAM producers.
US DOJ link: https://www.justice.gov/archive/opa/pr/2005/April/05_at_207....
This is remarkably different than someone claiming donuts are spaceships when the company itself was charged and pleaded guilty, and it's a matter of public record.
Theres never any "proof."
Theres no "proof" on the internet.
All we ever have is "evidence."
just asked about some kind of proof when world is full of conspiracy theories, nothing wrong with that, so stop being aggressive and snarky
and i knew about stuff from 2000, but thought there was something recent
Absence of evidence is not evidence of absence.
If an event happens, and multiple previous times that event happened a cause was identified. It is reasonable to suspect the same cause was responsible this time.
It does not give proof, but it does give reasonable suspicion.
If the USA were a real democracy they would do something about it. After all this even violates capitalism, e. g. free market leading to reduced prices. But the USA is run by a criminal gang, pocketing away money - the TechBros and their cronies. They just make any legislation they want to, with a bit sugar coating on top to not appear too overly evil or greedy. But they are.
I don’t think it’s very productive to go on a witch hunt on someone who said something stupid and is being taken out of context (albeit he should have known not to say that).