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Hyperscalers are buying all the chips to then rent them to us later

5•adelks•2h ago
This may sound alarming, but it appears as simple math to me

1. Chip price increase applies to everyone, including hyperscalers 2. I assume most of consumers refuse to pay for such ridiculous prices. 3. Hyperscalers pay the price because they expect return on investment 2. We, consumers, are actually the end-users of the chips they bought

It appears then that Hyperscalers are outbidding us at buying chips, then will make us pay back the ridiculous price they outbid us with through renting them back to us.

The way out seems simple: don't pay for AI and wait till one can afford chips for local (or federated) AI.

But there's the whole b2b market that I don't know what to think about

What are your thoughts?

Comments

stogot•2h ago
Since when do you buy a direct A15? Or as Tranium? Or Maia? Or cobalt? Or graviton? Or a TPU? The hyperscalers are selling to enterprises not consumers. The apple chips are sold to consumers but they sell the whole hardware not just the chip
stop50•1h ago
in the Price for an nvidia card is not only the price for the card. Its also the limitations of producing it. The Hyperscalers have much deeper pockets than the consumers, so they compete via the price to buy as much as possible from the limited batches nvidia/amd/... sell. As a result, manufacturers are changing the number of different chip types, so that instead of 4 graphics cards and 1 CUDA card, there is now 1 graphic card and 3 CUDA cards.

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