• melfie@lemy.lol
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    10 days ago

    The reason RAM prices went up 4x is that a massive amount of not-yet-manufactured memory was bought with money that doesn’t really exist to be put into GPUs that haven’t been made yet, to be installed in data centers that haven’t been built, powered by infrastructure that may never exist, to satisfy demand that isn’t actually there, in order to generate profits that are mathematically impossible.

    😎

    • ColeSloth@discuss.tchncs.de
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      10 days ago

      The price crash is going to be great. Such a massive yo-yo. Most of the AI companies will just completely eat shit out of it.

      • mic_check_one_two@lemmy.dbzer0.com
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        10 days ago

        Yes and no. The hardware companies have already said that they’re not interested in expanding production. They know it’s a bubble, and don’t want expanded production now to cause a glut in the future when the inevitable pop happens. So prices may not actually drop, (even after the pop), because the companies still won’t be producing more hardware than they currently are.

        My best guess is that we’ll have some dark data centers sitting around collecting dust, but the hardware they bought won’t actually flood the market and crash prices. If anything, since the US dollar’s value is essentially tied to Nvidia and OpenAI’s market share, a pop will only make the dollar less powerful and will counteract any potential drops in prices that may have otherwise happened. The companies will get a trillion dollar bailout when the pop happens, (because they’re too big to fail) then nothing will change about the current hardware prices.

        • ThomasWilliams@lemmy.world
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          9 days ago

          …except that PC sales will fall off a cliff, so they won’t have a market to sell to. Its not like you need a PC to access the internet anymore.