No one complained about the “market” when prices cratered from oversupply, putting or nearly putting companies out of business. There is a lead time for new entrants and people are rightfully gun-shy going all in on a commodity that has had many boom/bust cycles.
With that said, the market will sort it out. Either the AI companies run out of capital or more production comes online.
Or it won’t, and this goes on so long that the market will introduce a new option.
rented compute could become so much the norm that owning compute can’t bridge the gap again.
Game consoles are shifting to discless as we speak, so no used game market. Phone leases are a thing now so console leases are probably coming. They maybe even already here if you consider game streaming. In this very thread people are suggesting that renting makes so much more sense than building that it’s almost treated as a questionable practice to own.
But once ownership of compute is no longer tenable, it doesn’t take much for the market to be coerced via money into pushing agendas via marketing. Not just political agendas. "Please drink a verification can" meme, for example.
There will be too much money to be made in leasing compute that it would never make market sense to restore ownership to the people.
> Or it won’t, and this goes on so long that the market will introduce a new option.
Micron had a gross margin of almost 87% last quarter for a commodity. Yes, it takes time to build a factory and money to buy the machines, but memory is a commodity. There is no 'secret' around creating it. That type of margin simply will not last.
With that said, the market will sort it out. Either the AI companies run out of capital or more production comes online.
rented compute could become so much the norm that owning compute can’t bridge the gap again.
Game consoles are shifting to discless as we speak, so no used game market. Phone leases are a thing now so console leases are probably coming. They maybe even already here if you consider game streaming. In this very thread people are suggesting that renting makes so much more sense than building that it’s almost treated as a questionable practice to own.
But once ownership of compute is no longer tenable, it doesn’t take much for the market to be coerced via money into pushing agendas via marketing. Not just political agendas. "Please drink a verification can" meme, for example.
There will be too much money to be made in leasing compute that it would never make market sense to restore ownership to the people.
Micron had a gross margin of almost 87% last quarter for a commodity. Yes, it takes time to build a factory and money to buy the machines, but memory is a commodity. There is no 'secret' around creating it. That type of margin simply will not last.