Fuel price rises = logistics price rises.

michaelt 8 hours ago | parent | next [-]

You're right that fuel prices have risen. But usually the impact of fuel prices is mostly felt on bulkier, lower cost items first.

After all, a truck can carry a 10kg sack of rice, or a 10kg nvidia gpu. If shipping costs for 10kg rise by $15 the sack of rice has doubled in price, but the GPU is only 0.5% more expensive.

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kube-system 8 hours ago | parent [-]

For a truck yeah, but across the ocean, it isn't quite that simple because GPUs and grains are sent in different types of ships (or different modes entirely) that aren't interchangeable.

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michaelt 7 hours ago | parent [-]

You're right - perishable goods have to be shipped fast. Your bananas, berries, fresh fish, and not-fron-concentrate juice can't be on some slow-steaming container ship with the furniture, clothes, building materials and vehicles.

The GPUs can though.

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kube-system 4 hours ago | parent | next [-]

Rice is a nonperishable grain. Grain ships in neither of those. Grain is shipped in bulk carriers

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selectodude 6 hours ago | parent | prev [-]

And the GPUs are such high margin that they all take an airplane anyway.

	▲	kube-system 4 hours ago \| parent [-]
		That is other “different mode entirely” that exists to go across an ocean :)

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nostrademons 8 hours ago | parent | prev [-]

This is driven by AI datacenter demand, not fuel prices. RAM prices have actually dropped significantly in the last couple days as the Iran war hit and the possibility that interest rates might go up and pop the AI bubble sunk in. (Though let’s see where they go after the last couple days of whipsawing.)