alt Hacker NewsYou don't want to build a huge factory if you believe the market might deflate suddently.
A lot of industries got bitten by greed and the sudden deflation of demand and huge unsold inventory post COVID. The reality is the market was overly and abnormaly inflated and consumers who bought the stuff during COVID period were equipped for the next ~10 years in stuff like sporting goods and had no reason to buy new items in the subsequent years.
I do believe we will always need more RAM even if there is a market correction or AI bubble burst whatever you want to call it. It will not destroy AI completely, just cleanup the market. But how much will we need? I guess the chip makers makes their own guesses but don't want to make their company in peril either.
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Exactly, and this isn’t the 1st time this happens. Some companies disappeared years ago due to overcapacity when prices went down.
But they are building huge datacenters for AI. The investment appetite is there. So there must be some worse bottleneck when it comes to memory itself.
And that’s exactly what it’s going to do because the dependency chain on actually using this RAM is unlikely to succeed.
> A lot of industries got bitten by greed and the sudden deflation of demand and huge unsold inventory post COVID.
I’m betting that the world is about to hit a wall of inflation.
https://i.ibb.co/s9Mm8w2r/IMG-0743.jpg
This is a graph I made.
It shows:
* the inflation rate from 1971 until 1991
* the inflation rate from the start of COVID 19 until today.
Does anyone notice anything interesting about the graph?