I've been ruminating on this past two years, with life before AI most of the compute staying cheap and pretty much 90% idle , we are finally getting to the point of using all of this compute. We probably will find more algorithms to improve efficiency of all the matrix computations, and with AI bubble same thing will happen that happened with telecom bubble and all the fiber optic stuff that turned out to be drastically over provisioned. Fascinating times!

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shevy-java a day ago | parent | next [-]

I don't think any of this is "fascinating" - it is more of a racket scheme. They push the prices up. Governments failed the people here.

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yooogurt a day ago | parent [-]

Isn't this more easily explained by supply-demand? Supply can't quickly scale, and so with increased demand there will be increased prices.

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ozgrakkurt 17 hours ago | parent [-]

Imagine someone goes to the supermarket and buys all the tomatoes. Then supermarket owner says I don’t know, he bought all at once so it is a better sale. And he sells the remaining 10% of tomatoes at a huge markup

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vittore 16 hours ago | parent [-]

I think it is better compared to Dutch folks buying all the tulip bulbs. And the price skyrocketed.

	▲	Ekaros 13 hours ago \| parent [-]
		Tulips were by my understanding more so NFTs. Rich people gambling when bored. With promises for tulips in future... Future contracts for tulips. And prices were high because they were insanely rich merchants. The RAM looks like cornering market. Probably something OpenAI should be prosecuted for if they end up profiting from it.

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squibonpig 18 hours ago | parent | prev [-]

Except it's still sitting idle in warehouses while datacenters get built. They aren't running yet. Unlike with fiber, GPUs degrade rapidly with use, and for now datacenters need to be practically rebuilt to fit new generations, so we shouldn't expect much reusable hardware to come from this