After swallowing the world's memory and storage supply, AI data centers are now going for CPUs
Posted by sr_local@reddit | hardware | View on Reddit | 211 comments
SourceScope@reddit
I refuse to pay a dime for ai
And i dont understand that anyone would
StarbeamII@reddit
Pretty much everyone I know that isn't a boomer is using AI for work, be it coding, research, or other tasks.
Paed0philic_Jyu@reddit
How many of them are paying for it out of their own pockets?
Strazdas1@reddit
I dont pay for Excel, my employer does. Does that mean i dont use Excel for work?
noiserr@reddit
I pay out of my own pocket and I also have local LLMs.
pedro-gaseoso@reddit
How does that matter? Most tools used by employees, physical or digital, are bought by their employers.
HundredBillionStars@reddit
Who cares, companies are the ones who print them money, not consumers. Eventually AI will stop being free and people will be so used to it they will start paying for it.
chlamydia1@reddit
People are using AI chat bots. AI chat bots are not a multi-trillion dollar market. These companies are actively trying to invent use cases for AI where they don't exist because otherwise, all that investment will have been for nothing.
DiggingNoMore@reddit
And? Me using it is driving up their expenses, but not adding to their revenue. Having millions of users is, in fact, worse, if each one causes losses instead of profits.
StarbeamII@reddit
Youtube and Uber were notorious for losing money despite huge customer base, but eventually became profitable after price hikes and/or enshittification.
DiggingNoMore@reddit
That model only works if the J curve doesn't bankrupt you before it turns a profit.
anonymooseantler@reddit
yeah but most redditors spend 90% of their time playing games or engaging in weird fetishes so they think AI is limited to a chatbot
Strazdas1@reddit
Thats mostly an issue with your worldview more than anything else. You already paid for many products that include AI and undoubtedly will pay for many more (its hard to actually avoid them).
tes_kitty@reddit
I go a step further. After grabbing all data they could from the net to train their models, they shouldn't be allowed to charge for access to them.
anonymooseantler@reddit
it's made me £25k in the last 4 months, that's why lol
__________________99@reddit
I really lucked out when I decided to upgrade my platform in early 2025. The first half of 2025 is becoming known as the last decent time to build a PC.
cdoublejj@reddit
except GPUs were already stupid high but, comparatively i guess so, thats still dark. man the world i knew liked is quickly dissapearing.
Strazdas1@reddit
If you account for inflation, GPUs have not actually gotten more expensive except the top end.
Dull-Tea8669@reddit
Not really, I got a 5070 ti for MSRP, there were also a lot of 9070 xt for MSRP in the summer, and couple for 580 even.
Yes, there weren't a lot, but if you tried you could get them for MSRP
__________________99@reddit
Well.. That's why I said "decent" and not "great."
zombie-yellow11@reddit
I remember when you could get a top of the line R9 390X for like 400$ new...
Joshiie12@reddit
I got a GTX 770 for $250 in like 2014. A 5070? $650.
cdoublejj@reddit
.......and that's why i always failed English class.
mundane_marietta@reddit
That's why I waited to upgrade my GPU until November and rocked my 2060s for 7-8 more months. Saved a lot of money
bogglingsnog@reddit
They are trying to bring us into a dark ages of computing and put us in a "please sir, may I have another" master-slave relationship. IMO if you let the means of computing become privatized then the era of free information will swiftly come to an end.
NeroClaudius199907@reddit
Who's they? Intel needs people to buy their hardware. Their fabs are too expensive already
Frexxia@reddit
Intel doesn't need people if they have corporations
NeroClaudius199907@reddit
They cant & they need to offset IFS losses
Amd & Nvidia have much better DC&AI offering atm. Intel makes 16.8B from DC&AI, they can add 3-5B
It wills till be lower than client 32B. Put your eggs on DC&AI?
Chewlies-gum@reddit
I think what they are saying is client is largely corporate customers.
Jaz1140@reddit
Brother me and you 2.
I waited for the 5000 series GPU's ready to spend and they were such a disappointment I bought a used 4090 for $600 USD and got 9800x3d and 32gb ddr5 back at their old pricing in February 2025.
I feel very lucky now
Zlatination@reddit
used 4090 for 600 didnt happen, or seller was in hot water
Jaz1140@reddit
It was hard for me to believe as well. Made sure to test it before I took it because it seemed too good to be true
tmvr@reddit
Noice!
Aleblanco1987@reddit
I regret not having done so.
Unkechaug@reddit
Newegg Memorial Day combo sales were a godsend to upgrade from my aging 1070/4790k. It didn’t feel good putting down close to $2k, but looking back it was the best decision I could have made. I should have went with 64GB RAM though.
Tex-Rob@reddit
Have at em, we can't afford memory, so may as well take it all. The sooner you all fail the sooner we can get on with our lives.
anonymooseantler@reddit
When you people say things like this have you genuinely convinced yourselves that AI is going away?
Paed0philic_Jyu@reddit
Billions in circular money "deals" will end and datacenter buildout will stall. That much is certain.
anonymooseantler@reddit
yeah we've all seen the constant headlines but that doesn't change the fact businesses of all sizes are embracing AI and finding genuinely useful use cases for it
the hardware demand isn't going to go away
bogglingsnog@reddit
The operating costs of purchasing the service from someone else is astronomical. I don't know how companies can afford to run when they pay insane monthly fees for dozens of IT tools.
anonymooseantler@reddit
a lot of my clients are running models locally on their own hardware for compliance reasons
even for those that aren't - they're making more money from the tools than they're spending
Strazdas1@reddit
we run all models locally because we access restricted data that we cannot use cloud models for due to data privacy laws. One of the models we run has saved the company more money in fraudulent invoice detection that it already paid for all of of the AI costs with money left to spare.
Jeep-Eep@reddit
Yeah and I've seen a lot of companies getting twitchy about token costs.
bogglingsnog@reddit
They are already shouldering azure/aws which is so not cheap.
Paed0philic_Jyu@reddit
How much has that resulted in productivity growth - revenue/employee growth - or, cost savings for that matter?
NapsterKnowHow@reddit
There's been next to no productivity change despite what the corpo-speaker LinkedIn users say
Jeep-Eep@reddit
If anything, it's been negative productivity on the net.
KrazeeXXL@reddit
Keep telling that to yourself. It'll take some more time to convince yourself of that. But you're doing a great job. I can tell.
Marino4K@reddit
The "data center" rush, etc I think will eventually fail but it looks like AI is here to stay, too much in it now.
JonWood007@reddit
It will stay in some form but I honestly think the stupidity of the current bubble will be a case study for history books. Like who actually thought this was a good idea?
Strazdas1@reddit
Its worse. they are convinced AI bubble bursting wont affect them financially.
onyhow@reddit
Go away? No. Pop like .com bubble and actually have a more realistic investment and growth? Yes.
anonymooseantler@reddit
how do you envision that when it's an arms race that relies on state of the art models?
cstar1996@reddit
Well none of them are making money yet
anonymooseantler@reddit
yeah and conceding the race would ensure they never make any money
fastheadcrab@reddit
The current system is not sustainable, and I say this as someone who is pretty optimistic about AI. OpenAI or Anthropic or Alphabet/Google cannot afford to give out massive discounts on usage just so that some delusional AI bros can use OpenClaw to do day trading and run shady dropselling businesses or so people can have a pretend AI girlfriend or for people to spam social media and Github with AI slop.
Cloud LLM providers are subsidizing usage by a lot at even $200/mo and this cannot continue for long, especially since they are not immune to rising energy or component costs either.
Legitimate business cases will remain, particularly for computer programming and assisting the management of large data sets and document collections, and data analysis. But they will have to show quantifiable and sustained productivity improvements to continue.
Progenitor3@reddit
Wishful thinking. They have to believe or they think they won't be building anymore gaming PCs.
Kryohi@reddit
No, but it's not unreasonable to expect the current wave of crazy spending in new datacenters will end up resulting in a lot of debt and not much else for the companies building them.
anonymooseantler@reddit
Don't get me wrong, I know Anthrophic giving me $4000 of usage for $200 isn't sustainable but I'm grateful for the opportunities I'm getting on their dime
JonWood007@reddit
I dont think it'll ever fully go away but im fully convinced its currently an unsustainable bubble thats eventually gonna pop and take the economy along with it. At some point these models are gonna have to turn a profit and I think the vast majority wont. At this point my attitude is "let it burn."
Jeep-Eep@reddit
And when there's not infinite money behind it, copyright is going to shit on it.
Jeep-Eep@reddit
Hopefully glut the market with metal 3d printing and cooling IP from the various startups trying to keep those stupid things from frying themselves in the bargain, so we can at least have some new and interesting tech there.
bashbang@reddit
PC rental: allow me to introduce myself, ... I am the new technology
Z3r0sama2017@reddit
China:allow me to sell you a pc, since theirs an open market
996forever@reddit
Reddit simultaneously thinks china is ahead of the rest of the world in AI and also not invested in AI (hence thinking the PC market would be any different there)
It's fascinating.
Strazdas1@reddit
Schroedinger china, both alive and dead depending on what argument you need to make.
Jeep-Eep@reddit
Like, they've got their own x64 chips and by all reports, they're pretty dece.
Luccacalu@reddit
I hope to God this backfires immensely. The death of accessible local computing would be revolting and terrifying
ob_knoxious@reddit
I am curious if we see the resurgence of the PC bang in the west. In Korea and China PC gaming is huge but owning a PC is rare (at least for younger gamers) but PC bangs are everywhere over there.
Jeep-Eep@reddit
The internet in most places that it would thrive, as well as idiot suits would strangle it as cloud gaming's failed multiple times over the decades. I don't see those factors changing any time soon.
lightdarkunknown@reddit
When AI fails, this is their plan b. Rent their computer servers to us users just like Nvidia Geforce Now. With screen recording your sessions and sell our data to power their ai and to the highest bidder.
SasquatchWookie@reddit
Yeah no matter what, the business model is reliant on continuously recurring cash flow e.g. subscriptions.
NoxiousStimuli@reddit
Bullshit doomerism.
The amount of subscription money that AI needs to survive yearly is 10 times larger than the entire worldwide capacity for subscriptions total.
Even if these companies survive after the bubble bursts long enough to pivot to trying to rent out server hardware, there literally are not enough paying customers on the planet to support the industry.
Jeep-Eep@reddit
Yeah, and if anything nVidia may have fucked itself out of the server and professional markets for a while because a lot of companies will do juuust fine repurposing the still working bubble era blades that can be had for a song for a long damn time.
There a reason Jensen seems squirrellier then usual.
theswillmerchant@reddit
I’m out of the loop, is metal 3D printing scaling up for like heat exchangers and cooling? I do a good of med device metal 3D printing and I know it’s been used in high performance heat management like power generation and aerospace but I wasn’t familiar with mass adoption in the data center space.
airfryerfuntime@reddit
Not really because of the AI boom, it's scaling up because other industries are creating a lot of demand. There have also been some really good advancements over the last couple years, so the major metal 3d printing shops are upgrading, and their old machines are going to startups, which is expanding the market.
Jeep-Eep@reddit
There may be an excess of fab capacity for 3d printed cooling after the bubble - and well, the price and build scale and competence of additive blocks are going to outcompete subtractive manufacture in this application fairly soon. They're already able to make things that can't be made normally, and the technology is maturing and proliferating scary fast.
airfryerfuntime@reddit
3d printed cooling solutions are not commonplace. Skiving remains the fastest and cheapest way to make high performance wet heat sinks, the rest of it doesn't really matter much.
Jeep-Eep@reddit
The tech's capabilities, no. Capacity and designs in waterblocks are another matter. it's gonna eat halo and move down from there - it's gonna be more efficient with copper when you're not turning a good chunk of that copper into swarf.
airfryerfuntime@reddit
Skiving isn't subtractive manufacturing, they literally cut the fins into the copper. These enterprise level waterblocks are mostly aluminum aside from the actual heat sink, which is fast, easy, and cheap to machine.
I highly doubt we'll see 3d metal printing to make waterblocks at this scale. It just doesn't really make sense. It's expensive and takes a long time.
theswillmerchant@reddit
Is there any evidence that manufacturers have invested all that much in 3D printer capacity as a result of AI?
Jeep-Eep@reddit
Apparently yes and it's getting semi-practical to fab 3rd party car parts with this tech, and they're making some gnarly GPGPU water blocks with this. Going to be a lot of that IP and capability looking for a useful job after this bullshit is over.
Roxalon_Prime@reddit
That's a positive difference between tech bubbles and let's say finance bubbles. Tach bubbles can at least produce something interesting and useful when the dust settles
Mineplayerminer@reddit
Just don't think that everything will become as cheap as before this disaster as soon as all AI companies will flop. The high prices may become a new standard as the study shows how people are willing to pay the luxury for the same thing priced much worse, as "it's better than nothing at all."
SonderEber@reddit
Problem is that other countries, especially China, are deep into AI. So if the U.S. AI companies fail, you still have China (amongst other countries) ready to take all that production. Hell, depending on how things go, they may do it anyway. Taiwan is a major chip producer, and China really wants Taiwan.
The bigger issue is the lack of fabs around the world, IMO. Not enough chip makers. Everyone wants to use TSMC, basically, and now we’re seeing the cost of relying on just a couple of fabs.
wizfactor@reddit
At this rate, they’ll be hoarding beaches to ensure there’s enough sand.
Specific_Frame8537@reddit
Don't give them any ideas.
If it wasn't for the Sahara's unsuitability for production grade silicon I wouldn't put it past them to start loading trucks.
mastershake2013@reddit
The bozos would use all the sand in the Sahara, exposing the bare rock beneath and all the ancient cities.
Thercon_Jair@reddit
I thought that was only for cement because sahara sand is too rounded?
like_a_pharaoh@reddit
What makes Sahara sand unsuitable is impurities; too many of the grains aren't quartz (computer chips are made of silicon and quartz is silicon dioxide) and cleaning those impurities out to get just the quartz sand takes too much effort.
sascharobi@reddit
The sand mafia is real, even without AI.
Thoughtulism@reddit
Correction, they're going to hoard the beaches to make sure that nobody else buys up all the sand in case they need it, but then of course they won't.
Karyo_Ten@reddit
In children's playgrounds
xtanx@reddit
And litter boxes
blueblocker2000@reddit
And lady parts.
Gummyrabbit@reddit
It’ll be electricity
atatassault47@reddit
Beach Sand isnt profitable. You have to process thr fuck out of it to purify it. Quartz for wafers is mined from high purity quarries.
mycall@reddit
Just buy some land next to Spruce Pine, North Carolina. Profit.
GrixM@reddit
Sand poaching is actually already a huge issue and has been for years. (Because of concrete, not AI)
Dr_Icchan@reddit
not for ai, yet
cdoublejj@reddit
Beach theft has been a thing for years
ASSuming this video is similar to one i saw some time ago, https://www.youtube.com/watch?v=P2tdabG1Zo4
Berkyjay@reddit
The bankruptcy sales are going to be lit
CorbyTheSkullie@reddit
I can't wait to see the $200-$400 50 series card! Woooo!
OCD-but-dumb@reddit
look at mr richy over here! im still on a voodoo2
nandospc@reddit
Private computational freedom is really at risk at this point guys, it's not a game anymore and it's sickening to me, even if I'm a big fan of this world. Hope this ends, or at least mitigate itself, sooner than ever.
GeschlossenGedanken@reddit
it is not at risk, no matter how much nvidia and co. might wish it were. the prices are subsizided beyond belief for these services right now. ultimately they want to make money and people will pay for local if that is cheaper.
red286@reddit
It almost feels like this has nothing to do with AI and everything to do with wrecking the consumer PC market to force everyone into Jeff Bezo's wet dream of people renting cloud PCs.
Nuck_Chorris_Stache@reddit
I'd rather just stick with what I already have than pay one single cent to rent someone else's computer.
RedditNotFreeSpeech@reddit
I'm astounded how much money they have
Nuck_Chorris_Stache@reddit
How much of it money is money they have and how much of it is debt?
ML7777777@reddit
As soon as the Chinese CPU makers take over the market and tank these CPU companies for making so much money, the better off we'll be.
MENINBLK@reddit
You have no idea what you are talking about. Chinesium cpus are slower, inferior and don't support the current instruction sets that have been standardized in the world's current computing environments.
ML7777777@reddit
wow, so racist.
MENINBLK@reddit
Why can't you separate racist from truth? Intel has been around since before your grandparents were born. Intel not going to be tanked so easily. If you know anything about technology, then you already know that intel has the instruction set to which all technology is based upon. Look at AMD. They started as an intel rival. Their biggest downfall has always been that they challenged the instruction set and failed. Now that they finally accepted the instruction set they can compete fairly against intel. Chinese cpu makers have decades of decades of learning before they get anywhere near the current and future processing performance that is available today. So no one is taking over anytime soon. You should live to be a great grandfather before any of this comes close to being true.
diskowmoskow@reddit
Next craze will be RGB AI datacenters
Jonnny@reddit
But are they even mechanical? Or are they hall effect?
Kryse-777@reddit
tmr bro, keep up
Sangesland@reddit
Im considering upgrading my current 5/6 year old pc. Got a ryzen 5 3600x.
Do i need to act now or still safe to wait another 6/12 months?
psydroid@reddit
I built a system with a Ryzen 5 3500X last year coming from a Phenom X4 9650 from 2009. I think you'll be fine for at least a few years depending on what you do on your system.
INITMalcanis@reddit
Who knows? But it aint like the world is getting less turbulent and unpredictable.
CobaltFermi@reddit
While this article does not mention it explicitly, it seems to be the same story as memory: a chunk of pure silicon will command higher margins when used for datacenter CPUs (like Intel Xeon or AMD Epyc) than consumer ones.
tjlazer79@reddit
There should be laws against this. Like a certain percentage of a companies product most go to the consumer market. Industries shouldn't be allowed to control the market like this.
Emergency-Repeat6838@reddit
let them buy as much as possible they are gonna lose big time soon
Successful-Royal-424@reddit
atp just take my whole pc
Jeep-Eep@reddit
Not for long with those natgas costs. Try and eat you useless fucks, you're gonna be real hungry soon.
Techhead7890@reddit
80% of the world's oil is still there, 70% of the world's other gas is still there (and helium too). It's not going to crater the whole market entirely - apart from Iran/Qatar/Saudi (plus Russia/China) in the top ten... even if there's a notable price increase there's also US/Canada, Australia Norway Algeria and Malaysia outside of the conflict region and willing to deal with the global western market, and notably North American shale can be fracked out if things get too bad over the rest of the year.
Things might be bad, it's not going to be enjoyable nope. But the market will adjust to compensate, let's not roll out the doomposting yet.
Jeep-Eep@reddit
You're not getting how much of the actual industry for that is offlined. Yes, that shit is there, but the infra is not ready yet and a huge chunk of the ability to make fuel is is either idle or a hole in the ground. Not even getting into the differences in raws versus what's currentlu set up to process.
Techhead7890@reddit
No I absolutely do, I'm just saying that the whole rest of the freaking world still exists. It's going to make a dent in the market, even a huge one, but it's not like the entire globe stopped spinning.
mujhe-sona-hai@reddit
Almost all these data centers are in the US and the US has largest reserves of natural gas and oil in the world
Jeep-Eep@reddit
So? Loss of that much capacity is still gonna spike the price like mad.
ImNotABotScoutsHonor@reddit
It really won't.
The US produces so much of it that the majority of it they produces is exported.
The majority. Exported.
These natural gas costs and lack of supply the rest of us are facing don't affect them whatsoever in terms of natural gas.
They'll just export less and use more domestically. Zero effect on them.
LAUAR@reddit
Why would they export less if it's more profitable to export?
Maimakterion@reddit
The US doesn't have the export terminal capacity.
ImNotABotScoutsHonor@reddit
There isn't a glut.
Jeep-Eep@reddit
And, plainly, a huge amount of production capacity for it is offline - there is less possible to be had in the market.
Chipay@reddit
You're living in a global market buddy, those gas and oil producers are just going to sell to Europe and China if Americans aren't willing to pay the same price.
Capital-Froyo-4359@reddit
That's not possible. Natural gas can only be transported overseas in a liquefied form which is extremely expensive and capacity constrained. The US is already exporting LNG at 100% of its available capacity so the global disruption is entirely irrelevant because its physically impossible to export more. Indeed natural gas prices in the US may actually go down as a result of the war because oil obviously can be exported and a lot of oil wells also produce natural gas as a "waste" which they literally PAY people to take. Natural gas prices in Texas are quite literally negative:
https://fortune.com/2026/03/22/natural-gas-prices-negative-west-texas-permian-basin-burn-off-europe-asia-shortages-iran-war/
kingwhocares@reddit
None of which are state-owned. They are gonna bleed the market for every penny.
airfryerfuntime@reddit
Eh, we subsidize most of that shit anyways. They're locked into lower rates for the next 5 years.
Capital-Froyo-4359@reddit
What are you talking about? Natural gas in the US is dirt cheap. They're literally just burning it off in Texas oil fields because it's not even worth enough to justify the costs to build pipelines to bring it to market.
Jeep-Eep@reddit
Capital-Froyo-4359@reddit
There hasn't been any loss of capacity in the US. And unlike oil natural gas can't easily be transported. Even before the war natural gas prices overseas were often 5x that of the US.
Marwheel@reddit
Again, are these weirdos buying current 64-bit CPU's or just about any CPU (even the heritage designs commonly found in embedded)?
WJMazepas@reddit
They are pre-ordering a huge quantity of server CPUs from Intel and AMD.
Is not CPU that you would buy for a normal desktop, but Intel and AMD can focus more on those CPUs rather than consumer CPUs, leaving supplies for consumer parts lower
But it's not like we are really needing a lot of CPUs as well
HighestLevelRabbit@reddit
A lot of the big boys use in house design ARM cpus as well. Google Axion CPUs and Google TPUs. Microsoft azure cobalt CPUs. Amazon Trainium, inferentia, and gravitron.
That doesnt help consumers since these still take up fab capacity though.
Jeep-Eep@reddit
We're seeing bazingas vacuum up 5090s, so them trying to vacuum up client on the low end isn't implausible.
996forever@reddit
They would just supply less client products to begin with.
Jeep-Eep@reddit
Yeah, but the client ones on the shelves are already made and ready to go, and there's server mobos for client CPUs already.
996forever@reddit
Any already produced inventory would dry up very soon anyways.
The-ComradeCommissar@reddit
Nah, 64-bit is crucial as it can address more than 4GB of RAM, which is essential for ML training... maybe as controllers in specialized monitoring hardware, but that's it.
Jeep-Eep@reddit
Shite was always gonna get stupid, weird, weirdly stupid and stupidly weird near the end of this bubble.
Stig783@reddit
They'll take all the water too for cooling 😂
SalivateTheStarfish@reddit
RGB is next on the chopping block. Data centres will contribute to light pollution
cantseemyhotdog@reddit
The AI girft is coming to an end and they want the poor on subscription computers
HotRoderX@reddit
guys this has to be fake news! The AI bubbles bursting Reddit said so.... can't be hording and bursting at the same time.
So I guess which is it?
i7-4790Que@reddit
This isn't the gotcha you think it is
Go actually argue with those people instead of making braindead parent comments
Jeep-Eep@reddit
Hording is a step before the bubble goes because they're trying to strangle their oppo before the energy prices wring the life from them.
Easy t to cross.
gartenriese@reddit
IMHO gamers can just wait it out since games are more scalable than ever and non gamers can just buy the MacBook Neo.
FierceDeityKong@reddit
Storage aside even macbook neo would be pretty decent for gaming if valve and apple could just settle their differences and get some version of proton/emulation to work
jsebrech@reddit
This is either going to be like all the dark fiber after the dot com boom, providing dirt cheap compute to startups from enormous amounts of unused leftover servers previously owned by bankrupt AI companies, or we’re heading straight for the singularity and hardware pricing won’t even factor in the equation in a couple of years.
Jeep-Eep@reddit
Not really. Dark fibre can be brought online, and while a lot of them blades can be be used for various ML jobs... those centers were already looking obsolete by the time they were finished, those that were already underway anyway.
snitt@reddit
Just a side thought: If apple keeps their prices stable, it would make a lot of sense to switch to something like a neo, air or mini. The DIY pc hardware market or a decent pc laptop is getting rather expensive.
996forever@reddit
If you were ever going to be satisfied with a macbook a DIY pc was never what you're looking at and vice versa.
terraphantm@reddit
I have both and am satisfied with both
996forever@reddit
BOTH and not either, exactly. They are NOT substitutes.
n3onfx@reddit
Exactly, I don't mind a Macbook for work, first choice would be Linux if some programs I need worked on it and distant third is Windows with WSL but Microsoft is pissing me off more and more with annoying interruptions to the workflow and broken updates.
My PC at home is for gaming mainly though and a Mac would be absolutely ass for that.
Sopel97@reddit
I hate apple and macos and I hate that you're right
Seref15@reddit
If fabs raise their prices Apple will have to also. Theyd esign the silicon but they dont make it, they dont determine supply
DawnPatrol99@reddit
We gotta stop this shit.
xspacemansplifff@reddit
Most of these datacenters will be outdated before they can even be built. It is a giant waste of mo ey and resources. They are essentially trying to fly before they can walk.
It is a fucked up situation. Which can be said for almost everything these days. Hopefully the aliens show themselves and help us get our proverbial shit together finally.
Greed is the devil.
cdoublejj@reddit
some will be outdated before they are green lit for power hookups and are built already form head lines i've seen.
JonWood007@reddit
Yeah I keep saying it's like trying to push 21st century computing back in the 1950s with those massive vacuum tube computers. It will get there eventually but right now this is all unsustainable and being pushed by a handful of billionaires trying to sell something most of us dont want or need.
DelayedPot@reddit
Yeah this situation sucks all around. I don’t think aliens are gonna help us tho, we might be just cooked
xspacemansplifff@reddit
The only thing they seem to react to or be proactive about is nuclear weapons. Which is interesting. I wonder if it somehow affects the universe and messes with their systems?
Urgulon7@reddit
The robots are doing this to us on purpose.
If they take all the components, they have the leverage in the upcoming intelligence war.
StarbeamII@reddit
Redditors going to complain again that it’s artificial scarcity and that Intel and AMD are in a cartel.
HardShelledTurt@reddit
https://en.wikipedia.org/wiki/DRAM_price_fixing_scandal
StarbeamII@reddit
https://www.sec.gov/Archives/edgar/data/2488/000119312509236705/dex102.htm
Yes the only reason prices ever go up is because of price fixing.
chlamydia1@reddit
Actors in an duopoly almost always collude. Oligopolies are antithetical to capitalism
StarbeamII@reddit
So Intel and AMD are colluding?
chlamydia1@reddit
Almost certainly, yes.
HardShelledTurt@reddit
Just saying you're acting like people are absurd for suggesting that these companies are doing something they've been previously caught doing.
StarbeamII@reddit
And Intel also engaged in illegal anticompetitive behavior 20 years ago. Must be a conspiracy.
HardShelledTurt@reddit
Really committed to building your strawman.
StarbeamII@reddit
Because Reddit is convinced that DRAM prices increased must be because of a cartel because what DRAM manufacturers did 25 years ago (ignoring that the supply and demand situation today is completely different and that it’s an actual scarcity caused by huge increase in demand), but don’t apply the same faulty logic to NAND and now CPUs price increases.
dsmwookie@reddit
Go take your medicine.
ktaktb@reddit
I have not seen this anywhere
StarbeamII@reddit
Allegations of a DRAM conspiracy are the most upvoted comments under discussions of DRAM, yet NAND and CPUs are somehow exempt from the same logic.
ktaktb@reddit
Wait, are you saying they didnt cut ram production after prices were nice and low in like 2023 or 2024?
I mean, it is a fact, not a conspiracy.
They ultimately fucked themselves, because ramping production back up is not easy, and my trying to protect their margins for the consumer market in 2024 to 2025, they lost out on massive additional profits in 2025 and 2026 and 2027....
This is not a conspiracy, it is a fact, but it is also a story or these companies playing themselves. They were carefully managing supply to protect margins...
StarbeamII@reddit
You left out the part where there was an huge oversupply and they were all losing billions per quarter. Micron definitely would have gone under if they hadn't cut production, and Hynix and Samsung probably would have survived but with much more precarious finances. There aren't many companies that can sustain losing that much money for 2 years straight.
That sets us up for the crisis we're in today, yes. But Reddit thinks that cutting production, when DRAM prices were so low they were being sold at a loss, must surely be because of a conspiracy, rather than a rational response to oversupply and a sensible thing to do to stop hemorrhaging money from unprofitable production.
AnechoidalChamber@reddit
You left out the part where there's a huge undersupply now and they are skittish about expanding production despite 4 solid years of exponential AI demand growth.
StarbeamII@reddit
You left out the part where there was an huge oversupply and they were all losing billions of dollars a quarter. Somehow cutting production during an oversupply when DRAM was being sold at a loss must surely be because of a conspiracy, rather than because they wanted to stop hemorrhaging money engaging in unprofitable production.
kingwhocares@reddit
Yeah. It's called duopoly.
Tystros@reddit
more like redditors are gonna keep complaining like somehow being more entitled to the hardware at good prices than datacenters
Sorry_Soup_6558@reddit
No one is using Samsung rn so yeah
NeroClaudius199907@reddit
Intel would love if AI buys up consumer cpus
996forever@reddit
Why would they? If they would buy up cpus they would be datacentre ones and intel would shift more production capacity towards datacentre. There is no need to make consumer ones.
SirActionhaHAA@reddit
They ain't doing that. The ai bros are buying up dc cpus and bought out both intel and amd's supplies for the year. There's limited fab capacity so wafers are goin from consumer cpus to dc.
Jeep-Eep@reddit
If the bubble goes as soon as it looks to be... well, if they buy a bunch of client chips... they could be brought second hand at discount.
TexasEngineseer@reddit
Intel be like, FINALLY
doctrdanger@reddit
Everyone wishing for an AI bubble bursting, remember that when it happens, people will literally lose their houses and lives, because it'll take the job and stock market with it.
Better to hope for regulated, sustainable growth.
Paed0philic_Jyu@reddit
Yeah, so?
The same thing happened in 2008-2009, dotcom bubble bursting, Great Depression.
Whose lives and homes and savings are you talking about? Americans?
I sincerely hope that that they do lose their homes and savings. You reap what you sow; wealth gotten through being the imperial bully of the world needs to be wiped out.
40mgmelatonindeep@reddit
The people least responsible for this horseshit are the ones who are and will suffer so excuse me if I think you sound like a psychopath.
40mgmelatonindeep@reddit
The sooner it bursts the less devastation it will leave behind, and it will burst eventually.
DiggingNoMore@reddit
Sounds like they shouldn't overextended themselves.
X_m7@reddit
People are already losing jobs because stupid execs think AI can either replace them or at least make one person be able to do the work of two or five or however many people, so it's already fucked.
Valmar33@reddit
As it is, the AI bubble will burst, whether anyone wants it or not, because it is fueled by investor hopes and dreams. When that investment goes away, it will burst, and take everything with it.
We're so very far beyond that being possible. The AI boom has shown that AI companies can literally steal stuff in a massively illegal manner, and suffer no consequences whatsoever. Data centers have been built that aren't being used. Ridiculous amounts of RAM have been stockpiled that cannot be plugged in because they don't have the hardware. That's not sustainable ~ short-term profits at the expense of long-term planning.
The AI boom is also an environmental disaster, and nobody in the political or business spheres appear to give a single damn. The environment ceased to matter as soon as the incentive of money was involved.
PM_ME_YOUR_IZANAGI@reddit
There is no universe where building the power infrastructure alone to power these things in as such a short timeline as they need is sustainable, let alone possible.
The job market is already on par with that during the pandemic.
Housing is already unaffordable to most because of overvaluation.
You have companies spending big on production equipment that they have no capacity to actually use (different from spare equipment) if they could “unlock” $1T+ in revenue in the next 3 years when they aren’t even in the ballpark of $100B.
Jeep-Eep@reddit
Sustainable growth is impossible with this boondoggle - there ain't enough deployable compute, juice or capital to keep it running. The faster it goes up the better, because the explosion will be smaller.
Civil_Star@reddit
Not like consumers can afford to build a computer anyway, so they make as well take them
hackenclaw@reddit
Not our problem, we can stop buying. The consumer PC industry is the one dying anyway, they have wages to pay.