alt Hacker NewsThe only real visibility we have into the demand side (kinda) are spot prices, and those seem to be flat or decreasing for GPU instances. Surely if there was this crazy, exponential demand, spot prices would reflect that.
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lukeschlather • last Tuesday at 4:45 PM
I wouldn't say exponential, I would also say it's likely that Amazon is projecting demand to rise faster than it is. (But it is still consistently rising, and with demand rising they would prefer to overestimate than underestimate.)
Let's suppose that AWS is raising prices because demand is falling.
Ok, so AWS has extra capacity they need to sell but they're raising prices. Customers move off and go to another supplier. AWS has even more capacity they can't sell.
How does that make sense economically?
Do you think AWS is somehow able to make more money milking their existing customers than to sell at supply and demand equilibrium?