While you're right, this normalization may take upwards of a year. This manufacturing is not easy to set up and if the manufacturers see this as a one time purchase, they may also decide not to scale up production. After all, they just started making 2-3x on existing products.
They may also decide not to scale up production. After all, they just started making 2-3x on existing products.
Another thing to consider is that the current spike in demand is almost entirely fueled by datacenters used for AI.
It takes years to set up new manufacturing facilities, and the AI bubble popping is still going to happen at one point or another. They may simply decide not to increase manufacturing capacity because they believe that this spike in demand is temporary.
Building new capacity costs money, and if the demand suddenly drops you cannot make that money back on sales.
Their is no GPU demand from miners anymore as asics are vastly more efficient. Their was a pretty significant drop in prices for second hand GPUs on the open market just before the ai bubble started to pickup significantly.
For ram at least it's not supply and demand, it's companies deciding that it's more profitable to sell directly to AI companies so they literally drop their consumer products division completely. :/
Its more profitable because the demand is higher and the supply us limited. If the demand from consumers was higher they would drop the ai companies. Also openai made a deal with 2 of the 3 majour suppliers without telling each other in what is theorised to be a move simply to prevent competition from acquiring the hardware. It is just supply demand just at the level of entire sectors of the market instead of as a per unit thing.
The companies selling have decided that that is a risk they are willing to accept. And if they can't pay then all those chips get reallocated back to the consumer market and supply meets demand thus our prices drop
It's not an open market when there are only 3 companies that manufacture RAM, and they already have a history of being punished for illegally colluding with each other.
19 Comments
ekZepp@lemmy.world · 19 pts · 267d
Shitty greedy companies, doing shitty greedy things.
TrickDacy@lemmy.world · 11 pts · 266d
Bastards*
Robbsen1@discuss.tchncs.de · 7 pts · 266d
Why does it look like he is answering his own question?
capcool@lemmy.world · 2 pts · 266d
I don’t make this template, thats why I made it on the sides.
SoupBrick@pawb.social · 6 pts · 266d
First they came for the Artists and I did not speak out- because I was not an Artist.
Then they came for the Environment and I did not speak out- because I did not live next to a data center.
Then they came for the Gamers- and now AI is "too big to fail".
krooklochurm@lemmy.ca · 1 pts · 266d
In English do the make for into a meme wheningis do make computers am personal
muntedcrocodile@hilariouschaos.com · -17 pts · 266d
I get why people are mad about this. But supply demand and the open market will mean that prices will come back down at some point. Just gotta wait
Brownboy13@lemmy.world · 15 pts · 266d
While you're right, this normalization may take upwards of a year. This manufacturing is not easy to set up and if the manufacturers see this as a one time purchase, they may also decide not to scale up production. After all, they just started making 2-3x on existing products.
Humanius@lemmy.world · 4 pts · 266d
Another thing to consider is that the current spike in demand is almost entirely fueled by datacenters used for AI.
It takes years to set up new manufacturing facilities, and the AI bubble popping is still going to happen at one point or another. They may simply decide not to increase manufacturing capacity because they believe that this spike in demand is temporary.
Building new capacity costs money, and if the demand suddenly drops you cannot make that money back on sales.
FooBarrington@lemmy.world · 15 pts · 266d
Just like GPU prices! As soon as those miners stop buying all the GPUs, the top-line models will come back down.
Oh wait.
muntedcrocodile@hilariouschaos.com · 1 pts · 266d
Their is no GPU demand from miners anymore as asics are vastly more efficient. Their was a pretty significant drop in prices for second hand GPUs on the open market just before the ai bubble started to pickup significantly.
FooBarrington@lemmy.world · 1 pts · 266d
You're missing my point.
When the miner craze started, the top-line model prices shot up, and they never came back down. All the other prices increased as well.
In a few generations, prices doubled.
Asafum@feddit.nl · 8 pts · 266d
For ram at least it's not supply and demand, it's companies deciding that it's more profitable to sell directly to AI companies so they literally drop their consumer products division completely. :/
muntedcrocodile@hilariouschaos.com · 1 pts · 266d
Its more profitable because the demand is higher and the supply us limited. If the demand from consumers was higher they would drop the ai companies. Also openai made a deal with 2 of the 3 majour suppliers without telling each other in what is theorised to be a move simply to prevent competition from acquiring the hardware. It is just supply demand just at the level of entire sectors of the market instead of as a per unit thing.
FarceOfWill@infosec.pub · 8 pts · 266d
Its not even supply and demand though. Its not at all clear the demanders can actually pay for the chips theyve ordered
muntedcrocodile@hilariouschaos.com · 0 pts · 266d
The companies selling have decided that that is a risk they are willing to accept. And if they can't pay then all those chips get reallocated back to the consumer market and supply meets demand thus our prices drop
paultimate14@lemmy.world · 8 pts · 266d
It's not an open market when there are only 3 companies that manufacture RAM, and they already have a history of being punished for illegally colluding with each other.
muntedcrocodile@hilariouschaos.com · 0 pts · 266d
Thats just more economic pressure for a new competitor to step in and pick up the slack
surewhynotlem@lemmy.world · 2 pts · 266d
Economics 101. It works great because you get to ignore greed, collusion, external forces, and human behavior.
There's a reason they also teach economics 201.