Thread

1. ocd · 1790861971 · focus · HN ↗

   I'm not a business guy, but I think I would be very worried if I created any opening (even on the very long term) for competition to justify itself being built up to meet demand (or national security requirements of other countries) on an industry I mostly control, because I prioritized extremely high prices for a few years that might have the effect of changing the arithmetic for potential competitors that wouldn't have done it before.

   It makes me consider whether there would be retaliation in later years against the US intellectual property system in countries other than China. While RAM is a tangible product, the areas it serves aren't really.

   1. ifwinterco · 1790926634 · focus · HN ↗

      Historically the RAM industry has done the opposite (ramped up production aggressively due to high prices) only for that production to all come online during a glut.

      This process can be fatal for a company as your expensive fixed investment hits a demand cycle that can turn overnight.

      So it’s not about being a moustache twirling villain and conniving to keep prices high, it’s just not responsible or sensible to ramp up production massively based on a temporary AI bubble that could pop at any moment

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