> and are now not scaling up production according to demand

1) boom and bust cycle in memory industry is a repeated problem

2) companies are not obligated to scale up

> and is being taken out of context

no it is not - Altman is lying by omission[0] by implicating that various important costs are not real

[0] https://news.ycombinator.com/item?id=50400515 for longer comment on that