Word is, it's because OpenAI, the ChatGPT company, bought 40% of the world's RAM raw materials capacity for a period of time Related, Crucial is shutting down — because Micron wants to sell its...
Samsung subsidiaries are, naturally, going to look to Samsung Semiconductor first when they need parts. Such was reportedly the case for Samsung Electronics, in search of memory supplies for its newest smartphones as the company ramps up production for 2026 flagship designs. But with so much RAM hardware going into new “AI” data centers—and those companies willing to pay top dollar for their hardware—memory manufacturers like Samsung, SK Hynix, and Micron are prioritizing data center suppliers to maximize profits.
The end result, according to a report from SE Daily spotted by SamMobile, is that Samsung Semiconductor rejected the original order for smartphone DRAM chips from Samsung Electronics’ Mobile Experience division. The smartphone manufacturing arm of the company had hoped to nail down pricing and supply for another year. But reports say that due to “chipflation,” the phone-making division must renegotiate quarterly, with a long-term supply deal rejected by its corporate sibling. A short-term deal, with higher prices, was reportedly hammered out.
Assuming that this information is accurate—and to be clear, we can’t independently confirm it—consumers will see prices rise for Samsung phones and other mobile hardware.
I really wonder what will happen to all that infrastructure and parts after all the bubble bursts. Though I'm not looking forward to the fallout, especially if it will interact with the other...
I really wonder what will happen to all that infrastructure and parts after all the bubble bursts. Though I'm not looking forward to the fallout, especially if it will interact with the other (economic) issues in the USA in particular. That said, the longer the burst gets delayed, the harder the fallout may be. <_<;
I don’t see that happening for datacenters that have gone online. Maybe for the ones they stopped work on while under construction. Not by the big tech firms though; they think long-term and will...
I don’t see that happening for datacenters that have gone online. Maybe for the ones they stopped work on while under construction. Not by the big tech firms though; they think long-term and will just delay construction.
I’m reminded of Google’s downtown San Jose campus: approved in 2021, construction paused in 2023. Perhaps they will still build it someday?
In a sane world, just because a company has a lot of money, they shouldn't be able to cause shortages for literally everybody else. We should have gaurdrails on these incredibly hard to source...
In a sane world, just because a company has a lot of money, they shouldn't be able to cause shortages for literally everybody else.
We should have gaurdrails on these incredibly hard to source parts. We don't let scalpers buy every single concert ticket, pretty sure we should't let the least profitable company of all time buy half of the second most critical computing computing component and kneecap every other sector.
I agree, but sadly it’s par for the course. Another historical example is Softsoap, where the company monopolized production of plastic liquid pumps in order to make sure nobody else could sell...
I agree, but sadly it’s par for the course. Another historical example is Softsoap, where the company monopolized production of plastic liquid pumps in order to make sure nobody else could sell their liquid soaps to compete.
Either way, if it takes borderline extortion to get their product to market.... The AI feels a bit like that. I don't want it in every nookand cranny, but every provider seems determined to...
Either way, if it takes borderline extortion to get their product to market....
The AI feels a bit like that. I don't want it in every nookand cranny, but every provider seems determined to pretend it's actually increasing engagement.
(also, if RAM were held back a full year pretty sure there would be a full government takeover of somebody)
Recently I was in the market to do some home PC upgrade and had similar run-ins with cost. I passed on it but I didn't look deep into the why - talk about eye opening! Wow.
Recently I was in the market to do some home PC upgrade and had similar run-ins with cost. I passed on it but I didn't look deep into the why - talk about eye opening! Wow.
Word is, it's because OpenAI, the ChatGPT company, bought 40% of the world's RAM raw materials capacity for a period of time
Related, Crucial is shutting down — because Micron wants to sell its RAM and SSDs to AI companies instead
I don't think I like this
A company buying 40% of RAM on borrowed money with a product that’s never turned a profit is a depressing reality to live in.
I really wonder what will happen to all that infrastructure and parts after all the bubble bursts. Though I'm not looking forward to the fallout, especially if it will interact with the other (economic) issues in the USA in particular. That said, the longer the burst gets delayed, the harder the fallout may be. <_<;
A good amount will still get used. But I do yearn for a future where I can pick up H100s for cheap.
I guess we could repurpose all those pending useless datacenters for storm shelters or something.
I don’t see that happening for datacenters that have gone online. Maybe for the ones they stopped work on while under construction. Not by the big tech firms though; they think long-term and will just delay construction.
I’m reminded of Google’s downtown San Jose campus: approved in 2021, construction paused in 2023. Perhaps they will still build it someday?
Ugh, this bubble can't burst fast enough.
The same RAM I bought one year ago for $120 is now retailing for $500. Is this the vaunted "free market economy" that so many seem to harp on about?
Honestly I don't really get the reason for the snark.
In a sane world, just because a company has a lot of money, they shouldn't be able to cause shortages for literally everybody else.
We should have gaurdrails on these incredibly hard to source parts. We don't let scalpers buy every single concert ticket, pretty sure we should't let the least profitable company of all time buy half of the second most critical computing computing component and kneecap every other sector.
I agree, but sadly it’s par for the course. Another historical example is Softsoap, where the company monopolized production of plastic liquid pumps in order to make sure nobody else could sell their liquid soaps to compete.
To be fair, that was for one year, as they were developing a new consumer product, on an item not a mainstay of modern civilization.
Either way, if it takes borderline extortion to get their product to market....
The AI feels a bit like that. I don't want it in every nookand cranny, but every provider seems determined to pretend it's actually increasing engagement.
(also, if RAM were held back a full year pretty sure there would be a full government takeover of somebody)
pssst, your braces are swapped :)
I may or may not still be sloshed from the vacation I just got back from. 😅
It's an unfortunate lack of understanding of economics that's gotten worse because we have political identities tied up in it.
Recently I was in the market to do some home PC upgrade and had similar run-ins with cost. I passed on it but I didn't look deep into the why - talk about eye opening! Wow.
I picked a really bad time to suggest we build a gaming computer together for the lads Christmas. Whoops.