The tools work as advertised and are currently priced way cheaper than they cost to create?
It's an even bigger grift from the POV of companies building AI into their products - investors pressure companies to add AI features, managers demand thing that aren't achievable, developers bodge things together because they know it's worthless, marketing sells it like it's perfect, customers don't actually want it so sales bundles it into every plan and increases the price. Number go up, everyone gets a promotion. The customer has no alternatives because everyone else is doing the same.
Well, that's the grift problem right there - some people use public funds to subsidize a product, undermine the competition, front-run and scalp the hardware market, create inflation for everything, misallocate capital and deprive other assets of investment, all the while attempting a vendor lock-in at somebody else's expense.
Why would anybody see any of these as good is beyond me.
So either sales have collapsed or the shortage doesn’t exist (yet?)
RAM prices will eventually come down within 2-3 years.
The author seems to believe, wrongly, that these "AI factories" don't run on the same hardware or software as the digital economy.
First off, the language of the article implies that the hardware itself, regardless of CPU/GPU ratio (which isn't mentioned at all), is inherently incapable of anything but serving AI. Its very assumption is a false dichotomy between "AI hardware" and "general purpose technology", an assumption that the hardware that runs "AI" can't serve YouTube videos, store cloud backups, or serve "narrow AI," whatever the author's definition of that is.
Second, it's incorrect to claim "nobody had GPUs in servers." Virtual desktop infrastructure, HPC (pharma sim, fintech modeling, oil and gas), media streaming and transcoding, VFX/Hollywood, all use similar CPU/GPU ratios.
Moreover, the specialized HBM + ASIC infrastructure many companies are now turning to, is driving a ton of research and innovation in the space. These technologies aren't new, and continue to be widely used in many other applications other than "AI," which the author would believe is the sole utility of these "AI investments."
ja27•1mo ago