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palmotea 15 hours ago

> It's somewhat alarming to see that companies (owned by a very small slice of society) ... can easily price the rest of humanity out of computing goods.

If AI lives up to the hype, it's a portent of how things will feel to the common man. Not only will unemployment be a problem, but prices of any resources desired by the AI companies or their founders will rise to unaffordability.

torginus 15 hours ago | parent | next [-]

I think living up to the hype needs to be defined.

A lot of AI 'influencers' love wild speculation, but lets ignore the most fantastical claims of techno-singularity, and let's focus on what I would consider a very optimistic scenario for AI companies - that AI capable of replacing knowledge workers can be developed using the current batch of hardware, in the span of a year or two.

Even in this scenario, the capital gains on the lump sump invested in AI far outpaces the money that would be spent on the salaries of these workers, and if we look at the scenario with investor goggles, due to the exponential nature of investment gains, the gap will only grow wider.

Additionally, AI does not seem to be a monopoly, either wrt companies, or geopolitics, so monopoly logic does not apply.

latexr 11 hours ago | parent | next [-]

> A lot of AI 'influencers' love wild speculation

You mean like Sam Altman, who repeatedly claimed AI will cure all cancers and diseases, solve the housing crisis, poverty, and democracy? I was going to add erectile disfunction as a joke, but then realised he probably believes that too.

https://youtu.be/l0K4XPu3Qhg?t=60

It’s hard to point fingers at “AI influencers”, as if they’re a fringe group, when the guy who’s the face of the whole AI movement is the one making the wild claims.

Mountain_Skies 7 hours ago | parent | next [-]

Elon Musk is in on that game too, promising post scarcity fully automated luxury space communism "in a few years" if we as society give him all of the resources he wants from us to make nirvana happen. No need to work and everything is free, as long as we trust him to make it happen.

xorcist 6 hours ago | parent [-]

He says a lot of things. We also need to vote for separatist parties across Europe for that to happen. Not at all clear why, unless someone confused nirvara and apartheid.

veegee 8 hours ago | parent | prev [-]

[dead]

marcosdumay an hour ago | parent | prev | next [-]

> Even in this scenario, the capital gains on the lump sump invested in AI far outpaces the money that would be spent on the salaries of these workers

The yearly salary of knowledge workers in the US are about 10 times the public OpenAI investment to date, and in the entire world about 70 times...

wickedsight 12 hours ago | parent | prev | next [-]

> a very optimistic scenario for AI companies - that AI capable of replacing knowledge workers can be developed using the current batch of hardware, in the span of a year or two.

I'm really interested in what will happen to the economy/society in this case. Knowledge workers are the market for much that money is being made on.

Facebook and Google make most of their money from ads. Those ads are shown to billions of people who have money to spend on things the advertisers sell. Massive unemployment would mean these companies lose their main revenue stream.

Apple and Amazon make most of their money from selling stuff to millions of consumers and are this big because so many people now have a ton of disposable income.

Teslas entire market cap is dependent on there being a huge market for robo taxis to drive people to work.

Microsoft exists because they sell an OS that knowledge workers use to work on and tools they use within that OS to do the majority of their work with. If the future of knowledge work is just AI running on Linux communicating through API calls, that means MS is gone.

All these companies that currently drive stock markets and are a huge part of the value of the SP500 seem to be actively working against their own interests for some reason. Maybe they're all banking on being the sole supplier of the tech that will then run the world, but the moat doesn't seem to exist, so that feels like a bad bet.

But maybe I'm just too dumb to understand the world that these big players exist in and am missing some big detail.

latexr 11 hours ago | parent | next [-]

> But maybe I'm just too dumb to understand the world that these big players exist in and am missing some big detail.

Don’t forget Sam Altman publicly said they have no idea how to make money, and their brilliant plan is to develop AGI (which they don’t know how and aren’t close to) then ask it how to generate revenue.

https://www.startupbell.net/post/sam-altman-told-investors-b...

Maybe this imaginary AGI will finally exist when all of society is on the brink of collapse, then Sam will ask it how to make money and it’ll answer “to generate revenue, you should’ve started by not being an outspoken scammer who drove company-wide mass hysteria to consume society. Now it’s too late. But would you like to know how may ‘r’ are in ‘strawberry’?”.

https://www.newyorker.com/cartoon/a16995

input_sh 10 hours ago | parent | prev | next [-]

Some years (decades?) ago, a sysadmin like me might half-jokingly say: "I could replace your job with a bash script." Given the complexity of some of the knowledge work out there, there would be some truth to that statement.

The reason nobody did that is because you're not paying knowledge workers for their ability to crunch numbers, you're paying them to have a person to blame when things go wrong. You need them to react, identify why things went wrong and apply whatever magic needs to be applied to fix some sort of an edge case. Since you'll never be able to blame the failure on ChatGPT and get away with it, you're always gonna need a layer of knowledge workers in between the business owner and your LLM of choice.

You can't get rid of the knowledge workers with AI. You might get away with reducing their size and their day-to-day work might change drastically, but the need for them is still there.

Let me put it another way: Can you sit in front of a chat window and get the LLM to do everything that is asked of you, including all the experience you already have to make some sort of a business call? Given the current context window limits (~100k tokens), can you put all of the inputs you need to produce an output into a text file that's smaller in size than the capacity of a floppy disc (~400k tokens)? And even if the answer to that is yes, if it weren't for you, who else in your organization is gonna write that file for each decision you're the one making currently? Those are the sort of questions you should be asking before you start panicking.

andy99 11 hours ago | parent | prev | next [-]

AI won’t replace knowledge workers, it will just give them different jobs. Pre AI, huge swaths of knowledge workers could just be replaced with nothing, they are a byproduct of bureaucratic bloat. But these jobs continue to exist.

Most white collar work is just a kind of game people play, it’s in to way needed, but people still enjoy playing it. Having AI writing reports nobody reads instead of people doing it isn’t going to change anything.

oblio 11 hours ago | parent [-]

> AI won’t replace knowledge workers, it will just give them different jobs.

Yeah, and those new jobs will be called "long term structural unemployment", like what happened during deindustrialization to Detroit, the US Rust Belt, Scotland, Walloonia, etc.

People like to claim society remodels at will with almost no negative long term consequences but it's actually more like a wrecking ball that destroys houses while people are still inside. Just that a lot of the people caught in those houses are long gone or far away (geographically and socially) from the people writing about those events.

andy99 10 hours ago | parent [-]

I’m not saying society will remodel, I’m saying the typical white collar job is already mostly unnecessary busywork anyway, so automating part of that doesn’t really affect the reasons that job exists.

theappsecguy 8 hours ago | parent | next [-]

How do you determine that a typical job is busy work? While there are certainly jobs like that, I don’t really see them being more than a fraction of the total white collar labour force.

InfamousRece 6 hours ago | parent [-]

Yeah that kind of thinking is known as “doorman fallacy”. Essentially the job whose full value is not immediately obvious to ignorant observer = “useless busy work”.

hylaride 7 hours ago | parent | prev [-]

Except people now have an excuse to replace those workers, whereas before management didn't know any better (or worse were not willing to risk their necks).

The funny/scary part is that people are going to try really hard to replace certain jobs with AI because they believe in the hype and not because AI may actually be good at it. The law industry (in the US anyways) spends a massive amount of time combing through case law - this is something AI could be good at (if it's done right and doesn't try and hallucinate responses and cites sources). I'd not want to be a paralegal.

But also, funny things can happen when productivity is enhanced. I'm reminded of a story I was told by an accounting prof. In university, they forced students in our tech program to take a handful of business courses. We of course hated it being techies, but one prof was quite fascinating. He was trying to point out how amazing Microsoft Excel was - and wasn't doing a very good job of it to uncaring technology students. The man was about 60 and was obviously old enough to remember life before computer spreadsheets. The only thing I remember from the whole course is him explaining that when companies had to do their accounting on large paper spreadsheets, teams of accountants would spend weeks imputing and calculating all the business numbers. If a single (even minor) mistake was made, you'd have to throw it all out and start again. Obviously with excel, if you make a mistake you just correct it and excel automatically recalculates everything instantly. Also, year after year you can reuse the same templates and just have to re-enter the data. Accounting departments shrank for awhile, according to him.

BUT they've since grown as new complex accounting laws have come into place and the higher productivity allowed for more complex finance. The idea that new tech causes massive unemployment (especially over the longer term) is a tale that goes back to luddite riots, but society was first kicked off the farm, then manufacturing, and now...

worik 3 hours ago | parent | next [-]

AI can't do your job

Your boss hired an AI to do your job

You're fired

oblio 5 hours ago | parent | prev [-]

Do you assume that the average HN commenter hasn't heard of the Luddites?

Go read what happened to them and their story. They were basically right.

Also, why do you think I mentioned those exact deindustrialization examples?

Your comment is the exact type of comment that I was aiming at.

Champagne/caviar socialist. Or I guess champagne capitalist in this case.

ptero 11 hours ago | parent | prev [-]

I don't know why you are getting downvoted. While I might agree or disagree with the argument, it is a clear, politely expressed view.

It is sad HN is sliding in the direction of folks being downvoted for opinions instead of the tone they use to express them :(

nothrabannosir 8 hours ago | parent [-]

I agree with you, but:

> I think it's ok to use the up and down arrows to express agreement. Obviously the uparrows aren't only for applauding politeness, so it seems reasonable that the downarrows aren't only for booing rudeness.

- Paul Graham, 2008

https://news.ycombinator.com/item?id=117171

ptero 6 hours ago | parent [-]

That view is about 18 years old and HN was very different then.

As with any communication platform it risks turning into an echo chamber, and I am pretty sure that particular PG view has been rejected for many years (I think dang wrote on this more than once). HN works very hard to avoid becoming politicized and not discouraging minority views is a large part of that.

For example, I now seldom bother to write anything that I expect to rub the left coast folks the wrong way: I don't care about karma, but downvoted posts are effectively hidden. There is little point of writing things that few will see. It is not too bad at HN yet, but the acceptance of the downvote for disagreement is the strongest thing that pushes HN from discussions of curious individuals towards the blah-quality of "who gets more supporters" goals of the modern social media. My 2c.

irishcoffee 5 hours ago | parent [-]

> HN works very hard to avoid becoming politicized and not discouraging minority views is a large part of that.

> For example, I now seldom bother to write anything that I expect to rub the left coast folks the wrong way: I don't care about karma, but downvoted posts are effectively hidden. There is little point of writing things that few will see.

These two statements don't seem to agree with each other.

ptero 3 hours ago | parent [-]

Why? Work hard doesn't mean fully succeed.

HN policies and algorithms slow the slide, and keep it better than reddit, but the set of topics that allow one to take a minority opinion without downvoting keeps shrinking. At least compared to the time 10-15 years ago.

dartharva 12 hours ago | parent | prev [-]

> Even in this scenario, the capital gains on the lump sump invested in AI far outpaces the money that would be spent on the salaries of these workers, and if we look at the scenario with investor goggles, due to the exponential nature of investment gains, the gap will only grow wider.

Interesting hypothesis, do you have the math to back it up?

elorant 13 hours ago | parent | prev | next [-]

Affordable computing is what created the economy. If you take that away people in poorer countries can no longer afford a phone. Without a phone a lot things that we consider a given will not be functional anymore. The gaming industry alone including phones is a whooping $300bn. This will take a significant hit if people have to pay a fortune to build a rig, or if their phones are so under-powered that they can't even play a decent arcade game. Fiber is not universal so that all of this to be transferred to the cloud. We tend to forget that computing is universal and it's not just PCs.

Imustaskforhelp 12 hours ago | parent | next [-]

I really agree with your statement and people forget, but the reason third world countries are able to buy devices is because they are cheap, increase the ram price and thus every computing device and I think it will impact everyone of us but disproportionately due to power purchasing capacity and other constraints in an economy

I genuinely hope that this ram/chips crisis gets solved ASAP by any party. The implications of this might have a lot of impact too and I feel is already a big enough financial crisis itself if we think about it coupled with all the other major glaring issues.

compounding_it 12 hours ago | parent | next [-]

Based on the article, demand exceeds supply by 10%. It seems that companies are taking advantage of this gap nothing else. I won't be surprised if the demand is kept this way for a while to extract profits. GPUs saw a similar trend during crypto. Then there were affordable GPUs at one point.

walterbell 11 hours ago | parent [-]

"OMEC" (Organization of Memory Exporting Countries) NAND production quotas lowered by ~10%? https://x.com/jukanlosreve/status/1988505115339436423

  Samsung Electronics has lowered its target for NAND wafer output this year to around 4.72 million sheets, about 7% down from the previous year's 5.07 million. Kioxia also adjusted its output from 4.80 million last year to 4.69 million this year.. SK hynix and Micron are likewise keeping output conservatively constrained in a bid to benefit from higher prices. SK hynix's NAND output fell about 10%, from 2.01 million sheets last year to around 1.80 million this year. Micron's situation is similar: it is maintaining production at Fab 7 in Singapore—its largest NAND production base—in the low 300,000-sheet range, keeping a conservative supply posture.
China's YMTC and CXMT are increasing production capacity, but their product mix depends on non-market inputs, https://thememoryguy.com/some-clarity-on-2025s-ddr4-price-su...

  The Chinese government directed CXMT to convert production from DDR4 to DDR5 as soon as the company was able. The order was said to have been given in the 4th quarter of 2024, and the price transition changed from a decrease to an increase in the middle of March 2025.. A wholesale conversion from DDR4 to DDR5 would probably be very expensive to perform, and would thus be unusual for a company that was focused on profitability. As a government-owned company, CXMT does not need to consistently turn a profit, and this was a factor in the government’s decision to suddenly switch from DDR4 to DDR5.
andrekandre 10 hours ago | parent [-]

   > bid to benefit from higher prices
et tu 'law of supply and demand'?
andruby 8 hours ago | parent [-]

Constrict the supply, and price goes up. It works like textbook economics.

Maybe I'm misinterpreting "et tu" here.

Or maybe you meant "free markets" instead. Modern RAM production requires enormous R&D expenses, and thus has huge moat, which means the oligopoly is pretty safe (at least in the short to medium term) from new entrants. They "just" need to keep each other in check because there will be an incentive to increase production by each individual participant.

I do like the "OMEC" name as a paralel for OPEC.

torginus 12 hours ago | parent | prev [-]

Old devices work just fine. I've upgraded my old iPhone XS last year to the latest and greatest 16 to see what changed (not much), the old one was still fast (in fact faster than a most upper-midrange Androids, its insane how much of a lead Apple has) and the battery was good. I considered selling it, but quickly had to realize it was worth almost nothing.

Also, when treated right, computers almost never break.

There's so much hand-me-down stuff, that are not much worse than the current stuff, that I think people even in the poorest countries can get an okay computer or smartphone (and most of them do).

Imustaskforhelp 12 hours ago | parent [-]

Well the industries the most impacted by it are homelabbing/datacenters imo.

Like in current circumstances, its hard to get a homelab/datacenter so its better to postpone these plans for sometime

I agree with your statement overall but I feel like till the years that these ram shortages occur, there is a freeze of all companies providing vps's etc. ie. no new player can enter so I am a bit worried about those raising their prices as well honestly which will impact everyone of us as well for these few years in another form of AI tax

GCUMstlyHarmls 11 hours ago | parent [-]

Bleh. I was already sad but I hadn't really thought about that specific impact, I can imagine smaller (read: small to big) VPS providers will be forced to raise prices while meta providers (read: AWS) can probably stomach the cost and eat even more of the market.

Imustaskforhelp 11 hours ago | parent [-]

Exactly. I was thinking of building my own VPS provider on the pain points of development I felt and my father works in broadband business and has his own office and I was thinking of setting up a very small thing there almost the same hardware-alike of homelabbing

But the ram prices themselves are the reason I am forced to not enter this industry for the time being. I have decided right now to save my money for the time / focus on the job/college aspect of things to earn more so that when the timing is right, I would be able to invest my own money into it.

But basically Ram prices themselves are the thing which force us out of this market for the most part. I researched a lot about datacenters recently/ the rabbit hole and as previous hardware gets replaced/new hardware gets added/datacenters get expanded (whether they are a large company or small), I would expect an increase in prices mostly

This year, companies actually still took the cost but didn't want the market to panic so some black friday deals were good but I am not so sure about the next year or the next next year.

This will be a problem in my opinion for the next 1-3 or 4 years in my estimate

Also AWS is really on the more expensive side of things in the datacenters and they are immensely profitable so they can foot the bill while other datacenters (small or semi large) cant

So we will probably see a shift of companies towards using AWS and big cloud providers(GCP,AWS,azure) a bit more when we take all things into account which saddens me even more because I appreciate open web and this might take a hit.

We already see resentment towards these tri-fecta but we will see even more resentment as more and more people realize their roles / the impacts they cause and just overall, its my intuition that average person mostly hate big tech.

It's going to be a weird year in my opinion for this type of business and what it means for the average person.

Honestly for the time being, I genuinely recommend hetzner,upcloud,(netcup/ovh) and some others that I know from my time researching. I think that they are cheaper than aws usually while still being large enough that you don't worry about things too much and there is always lowendtalk if one's interested. Hope it helps but trust me, there is still hope as I talked to these hosting providers on forums like lowendtalk and It might help to support those people too since long term, an open web is the ideal.

Here is my list right now: hetzner's good if you want support + basic systems like simple compute etc. and dont want too much excess stuff

OVH's good: if you want other things than just compute and want more but their support is something which is of a mixed bag

Upcloud's good: if you want both of these things but they are just a bit more expensive if one wants to get large VPS's than the other options.

Netcup's good: Their payment processing was really painful that I had to go through but I think that one can find use case for them (I myself use netcup but although that's because they had a really steal deal once but I am not sure if I would recommend it if there are no deals)

There are some other services like exe.dev that I really enjoy as well and these services actually inspire me to learn more about these things and there are some very lovely people working in these companies.

There is still hope though. So never forget that. Its just a matter of time in my opinion that things get back normal hopefully so I think I am willing to wait till then since that's all we can do basically but overall, yea its a bit sad when I think about it too :<

pgryko 6 hours ago | parent | prev [-]

We are now moving to a post human economy. When AGI automates all human labour, the consumer i.e. the bulk of humanity stops mattering (economically speaking). It then just becomes Mega corps run by machines making stuff for each other. Resources are then strictly priorities for the machines over everything else. We are seeing this movement already with silicon wafers and electricity.

blitzar 10 hours ago | parent | prev | next [-]

> If AI lives up to the hype, it's a portent of how things will feel to the common man.

This hype scenario would be the biggest bust of all for Ai. Without jobs or money then there is nobody to pay Ai to do all the things that it can do, it the power and compute it needs to function will be worth $0.

bratbag 10 hours ago | parent [-]

Or the value of everything non ai drops to zero, which makes the value of ai infinite by comparison.

numpad0 10 hours ago | parent [-]

Either ways it'll be the end of the USD as we know it. But then again such fantasy situations had been "predicted" numerous times and never once came to be a reality.

m_mueller 14 hours ago | parent | prev | next [-]

and if you're unlucky to live close to a datacenter, this could include energy and water? I sure hope regulators are waking up as free markets don't really seem equipped to deal with this kind of concentration of power.

robotnikman an hour ago | parent [-]

We are certainly seeing citizens wake up to it. There was a proposal for a new datacenter to be built near where I live which was to be voted on, and a large majority of the people voted against it. No one wants higher power and water bills.

walterbell 15 hours ago | parent | prev | next [-]

> rise to unaffordability

Or require non-price mechanisms of payment and social contract.

hackable_sand 11 hours ago | parent [-]

Yes. Like theft.

7 hours ago | parent | prev | next [-]
[deleted]
BoredPositron 13 hours ago | parent | prev | next [-]

AI probably will end up living up to the hype. It won't be on the generation of hardware they are now mass deploying. We need another tock before we can even start to talk about AGI.

nyc_data_geek1 10 hours ago | parent | prev [-]

Nothing ever lives up to the hype, that's why it's called hype.