Is the RAM prices explosion another manufactured crisis to corps drain money from people before the AI bubble collapses?

Comments

• elgordino@fedia.io ⁨1⁩ ⁨day⁩ ago

  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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  • lordnikon@lemmy.world ⁨1⁩ ⁨day⁩ ago

    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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    • fonix232@fedia.io ⁨1⁩ ⁨day⁩ 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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  • Alsjemenou@lemy.nl ⁨18⁩ ⁨hours⁩ ago

    Right. If When it bursts they are left with massive stockpiles and cancelled orders.

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  • Ziggurat@jlai.lu ⁨1⁩ ⁨day⁩ 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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• givesomefucks@lemmy.world ⁨1⁩ ⁨day⁩ ago

  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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  • DeathsEmbrace@lemmy.world ⁨1⁩ ⁨day⁩ ago

    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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    • givesomefucks@lemmy.world ⁨1⁩ ⁨day⁩ ago

      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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    • oeuf@slrpnk.net ⁨1⁩ ⁨day⁩ ago

      The more you think about it the more capitalism looks like a death cult.

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• some_guy@lemmy.sdf.org ⁨1⁩ ⁨day⁩ 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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• Grimy@lemmy.world ⁨1⁩ ⁨day⁩ ago

  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 stop being viable.

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

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  • cornshark@lemmy.world ⁨1⁩ ⁨day⁩ ago

    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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    • Grimy@lemmy.world ⁨1⁩ ⁨day⁩ ago

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

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• BlameTheAntifa@lemmy.world ⁨17⁩ ⁨hours⁩ 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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• dragontamer@lemmy.world ⁨1⁩ ⁨day⁩ ago

  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.

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  • vermaterc@lemmy.ml ⁨1⁩ ⁨day⁩ ago

    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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    • dragontamer@lemmy.world ⁨1⁩ ⁨day⁩ 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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• neidu3@sh.itjust.works ⁨1⁩ ⁨day⁩ ago

  THEY™ stopped hoarding eggs, and now THEY™ are hording RAM instead.

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• vermaterc@lemmy.ml ⁨1⁩ ⁨day⁩ ago

  It’s not “manufacturered”, so it’s not conspiracy. But it’s from unreasonable and unacceptable high demand.

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