Ya dont say.

Negative Free Cash Flow are the words every one on HN needs to learn.

Every thing before now, you will look back upon as the happy time. When every year storage, ram and compute grew and the prices went down. Your cloud provider made so much money they paid cash for hardware.

Now they borrow at 8% and net margins on ram/storage were around $0.10/GB ... today they sit at over a dollar. (SEE micron's s10's if you want to check the math on that).

Forget circular financing, its a circular firing squad because your going to have to figure out where the hell your going to run any of your gear.

4x to 10x for ram +8% for financing +30percent AWS margins. Good luck everyone its gonna get rough out there.

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le-mark a day ago | parent | next [-]

Or hyperscalers revenue will continue to disappoint, there is no $60 trillion market for ai and there will be a glut of capacity for years to come!

	▲	jacquesm a day ago \| parent \| next [-]
		The capital (heh) mistake in the whole assumption that these companies are worth that much is that they'll crash the economy in their zeal to get there. And when the economy goes down the drain so do the expenditures because in the end the companies that could spend money on AI are taking that money out of the economy to put it in the pockets of a tiny fraction of society. You can only do that if you are willing to leave the rest without food on the table and that sort of move is simply not very wise.
	▲	lp92 9 hours ago \| parent \| prev \| next [-]
		Yeah that's not going to happen. They will take a page from the DRAM manufacturers and fix prices. And they will get away with it too.
	▲	vkou a day ago \| parent \| prev [-]
		There is definitely a $60 trillion market for AI, just not by next year.

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jacquesm a day ago | parent | prev [-]

I am very lucky to have stocked up on RAM before this happened (256G) but I wished I had doubled or quadrupled that, an upgrade simply isn't going to happen now.