alt Hacker NewsIt will end slowly, and then very suddenly.
The demand for AI simply doesn't exist at the real prices. It barely exists at the current subsidized rates - Microsoft, Google, Meta, Anthropic, OpenAI are spending hundreds of billions to make mere billions.
And then these data centers will be worthless, future ones won't get built, memory demand will evaporate on the spot.
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I'm yet to see any convincing argument that inference is subsidised in any substantial way. Training and speculative expansion are where the spend is from what I can see.
I have the same opinion, these AI companies can't even work financially with the cheap ram prices, they certainly won't with high prices.
And ram producers are betting on it, they will just milk the AI companies until they collapse.
Very interesting and thoughtful comment. I agree. When demand from hyperscalars drops rapidly after the tide goes out and everyone realizes that they can't continue building out the data centers, then fabs will be left with overcapacity that will flood the market. Wondering what this will mean for local LLMs when good RAM is available for cheap?