Yes, there is a large amount of circular money on the books.
But also they’ve induced a FOMO race to buy hardware where all the big tech companies are selling off chunks and raising money/debt as fast as possible to acquire more GPUs, lest they lose out on the AI race.
The cost to train a bigger model scales exponentially with increased performance (in theory, with current architecture). So you can only beat your competitors by buying a multiples mire GPU than them.
NVIDIA is making money, they’re also inducing demand by juicing the race to try and build that FOMO.
Unfortunately these companies are paying 20x more than consumers are for the same wafers, so for the allocation of RAM to become favourable to keep consumer lever RAM production running prices will need to increase at least that much.
Yes and no.
Yes, there is a large amount of circular money on the books.
But also they’ve induced a FOMO race to buy hardware where all the big tech companies are selling off chunks and raising money/debt as fast as possible to acquire more GPUs, lest they lose out on the AI race.
The cost to train a bigger model scales exponentially with increased performance (in theory, with current architecture). So you can only beat your competitors by buying a multiples mire GPU than them.
NVIDIA is making money, they’re also inducing demand by juicing the race to try and build that FOMO.
Unfortunately these companies are paying 20x more than consumers are for the same wafers, so for the allocation of RAM to become favourable to keep consumer lever RAM production running prices will need to increase at least that much.