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bigbadfelinetoday at 3:36 AM5 repliesview on HN

> has more demand than forecast

Nah. The demand is driven by corporations that hoard hardware in datacenters, starving the market and increasing prices in the process - otherwise known as scalping. Then they sell you back that same hardware, in the form of cloud services, for even higher prices.

More explanations here:

https://news.ycombinator.com/item?id=46416934


Replies

callctoday at 4:19 AM

Gosh. This sounds a lot like https://en.wikipedia.org/wiki/Silver_Thursday with extra steps

A bunch of problems pop up when a handful of super wealthy corporations can control markets.

appreciatorBustoday at 3:50 AM

If it’s that easy to make infinite money, maybe the govt should could just do that too so we’d have enough for healthcare and other programs?

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hn_throwaway_99today at 5:40 AM

Wow, this is an economics-free take if I've ever heard one. And calling it scalping feels laughable.

There are multiple RAM providers. Datacenters, many competing ones, are gobbling up RAM because there is currently a huge demand. And, unlike actual ticket scalpers, datacenters perform a very valuable service beyond just reselling the RAM. After all, end users could buy up RAM and GPUs themselves and build their own systems (which is basically what everybody did as recently as the early 00s), but they'd rather rent it because it's much less risky with much less capex.

This is simply run-of-the-mill supply and demand. You might convince me there was something nefarious if there was widespread collusion or monopoly abuse, and while some of the circular dealing is worrisome, it's still a robust market with multiple suppliers and multiple competitors in the datacenter space.

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kortillatoday at 4:44 AM

That’s not scalping. These companies are not selling nor renting back the memory.

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derekdahmertoday at 4:40 AM

Well that’s one interpretation.

Another way to think about it is a good that we once bought for private use where it sat around underutilized the majority of the time is instead being allocated in data centers where we rent slices of it, allowing RAM to be more efficiently allocated and used.

Yes it sucks that demand for RAM has led to scarcity and higher prices but those resources moving to data centers is a natural consequence of a shareable resource becoming expensive. It doesn’t have to be a conspiracy.