It’s related to the AI bubble. The AI companies are trying to make it as difficult as possible to get a good PC, because they know they’re cooked if the general public has access to systems that can run AI models locally, so they’re buying everything up as fast as they can in the name of data centers that will never be built.
As soon as the first one fails, it’s all over. Prices will tumble and memory makers will come crawling back to Valve (and other hardware makers) begging them to buy.
Let’s not forget that almost all memory is made by a cartel of 3 companies known for price fixing. They’re all being as slow as possible about increasing production capacity.
Is that not for good reason though? Only for them really, but if they did ramp up production and then the bubble pops… I wish they would ramp up production, it’s just easy to understand why they won’t.
If there is a demand for ram, which there is in the consumer market, then it shouldn’t be a risk. If DCs get cancelled, then they should have contracts in place for at least a minimum buy, which should offset cost risk. If they don’t have that, then that’s just shitty business. Even still, they can just as easily slow down production if needed. If the bubble pops, either they’ll have inventory that the world will buy and they can throttle back prod, or they don’t have inventory and they will have to throttle prod anyway since demand for DCs as a whole has to be more than just the consumer market.
Idk, it’s probably just the cynic in me, but I think it’s likely this is just manipulation of the prices, especially given the history of these companies doing just that.
It’s related to the AI bubble. The AI companies are trying to make it as difficult as possible to get a good PC, because they know they’re cooked if the general public has access to systems that can run AI models locally, so they’re buying everything up as fast as they can in the name of data centers that will never be built.
As soon as the first one fails, it’s all over. Prices will tumble and memory makers will come crawling back to Valve (and other hardware makers) begging them to buy.
Let’s not forget that almost all memory is made by a cartel of 3 companies known for price fixing. They’re all being as slow as possible about increasing production capacity.
Is that not for good reason though? Only for them really, but if they did ramp up production and then the bubble pops… I wish they would ramp up production, it’s just easy to understand why they won’t.
If there is a demand for ram, which there is in the consumer market, then it shouldn’t be a risk. If DCs get cancelled, then they should have contracts in place for at least a minimum buy, which should offset cost risk. If they don’t have that, then that’s just shitty business. Even still, they can just as easily slow down production if needed. If the bubble pops, either they’ll have inventory that the world will buy and they can throttle back prod, or they don’t have inventory and they will have to throttle prod anyway since demand for DCs as a whole has to be more than just the consumer market.
Idk, it’s probably just the cynic in me, but I think it’s likely this is just manipulation of the prices, especially given the history of these companies doing just that.