alt Hacker NewsCould you please expand on this?
Aren’t prices sky rocketing precisely because of excess demand? And they’d collapse in turn if demand disappeared.
My understanding of economics is entry level so please forgive my ignorance. I’m just curious what you mean.
Replies
8ytecoder • today at 6:15 AM
The usual argument is that as prices rise, demand will shrink and supply will rise to take advantage of the increased price.
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> Aren’t prices sky rocketing precisely because of excess demand?
Not exactly. The RAM crisis was sparked by OpenAI contracting with multiple vendors to take vast quantities of raw, unfinished wafers off the market. Wafers which OpenAI had no use for -- they just wanted to starve competitors.
This is different from an "AI is so popular that manufacturers can't keep up with demand" story.
OpenAI and Anthropic are the sleaziest companies that have come out of Silicon Valley in a long time, and that's really saying something.