‹ BackHN Continuity

Thread

The Painful Truth: The RAM Crisis Is Only Just the Beginning

62 points · 69 comments · perelin

  1. N_Lens · · focus · HN ↗
    The big companies are insulated because they've locked in multi-year supply contracts with ram manufacturers - Microsoft, Google, Meta, Amazon (All on 3-5 yr contracts). OAI's deal with Samsung & SK Hynix is also colossal - locking up roughly 900,000 DRAM wafers per month, roughly 40% of world output (Stargate project).

    Apple got caught out because it had a shorter contract that ended in the beginning of Q3, and they've tried to source their RAM from Chinese CXMT who declined because all capacity was already locked in contracts. They've gone with a lesser known company Kioxia.

    Overall the consumer segment is completely neglected, companies don't care about end users in the current market conditions.

    1. georgemcbay · · focus · HN ↗
      > Overall the consumer segment is completely neglected, companies don't care about end users in the current market conditions.

      Mirroring trends throughout the entire economy (not just RAM and other inputs for AI).

      Everyone is chasing the top 10% or higher of the K-shaped economy for all goods and services, servicing everyone else isn't seen as being worth the investment.

      This will just keep getting worse and worse everywhere for everything as long as we allow income inequality to keep exploding, which seems to be the plan.

      1. dingaling · · focus · HN ↗
        "companies don't care about end users in the current market conditions."

        Because the end users keep rushing to use the megacorps' latest AI models, weaving them into their work and life. So the megacorps keep locking in contracts to build more compute.

        If you use LLMs, you're responsible for this, there's no way to pass the buck. "I only use it as a companion for learning about history" - it's still your fault. "I only use it to help guide my solitions, not for vibecoding" - it's still your fault.

        1. Sabinus · · focus · HN ↗
          If you want an industry to act in a certain way you legislate for it, not wag fingers at consumers buying things. "If you want cheaper consumer devices we all need to individually stop using AI" is not useful or realistic.
Open on Hacker News to reply ↗

Unofficial Hacker News client; not affiliated with Y Combinator.