alt Hacker NewsNow thinking of this from the other side, 2 big DRAM producers are taking the risk to dedicate a very big part of their production to AI and if we assume they also have similar deals with other AI companies or big datacenters, what is their risk profile if the AI bubble bursts? Are they viable as companies then ? What is their plan B ?
Replies
I think the price increases we are seeing are a direct result of the skepticism about AI scale viability. The big dram houses aren’t increasing capacity, due to the risks you mention.
So demand from other sources has to be suppressed through being priced out in order to meet those supply promises made to OAI in ignorance of their true scale.
This is OAI doing suppliers dirty by making economy distorting moves without transparency, intentionally distorting the market in an effort to hurt competitors.
Yet another example of the “free market” creating destruction for the general public.
As a thought experiment, replace “dram” with “rice” or another essential food stock. Market manipulation such as this is wildly irresponsible, anti-humanity and antithetical to public good. Wars are started over less.
This is an excellent example of the actual alignment of OpenAI as an organization. Yet we are to trust them with leading the way in the alignment of our manque oracles of truth and power?
Their risks are none. They are not increasing capacity, only selling the available one to the highest bidder. Whenever these AI companies run out of money, these producers can simply resume their regular business.