It assumes that RAM remains supply constrained and that none of the existing RAM contracts are cut short.
But Meta and xAI putting A TON of AI compute onto the market. OpenAI and Anthropic are raising the costs of inference (by reducing how much inference users get via subscriptions). And we haven’t seen Oracle / CoreWeave struggle to pay their debts yet, but they will be selling assets once they get close to that point.
Chinese fabs might not be so tied with red tape and regulation upon regulation (which is a funny reversal, in terms of "communism vs capitalism" bureucracy/inefficiency cold war thinking)
All of their fabrication ability is based on old processes.
2.) Authoritarianism can move faster than anything. They can just say "wipe out that village, build the coal plant there, data center here, fab here.
3.) If it's red tape and regulation holding the US back, then that's clearly not "capitalism."
Except in the actual historical sense. They appear to enjoy all sorts of freedoms, increased prosperity, even have elections at different levels but under a single party system. Which is not necessarily that different than a effectively two party system.
>2.) Authoritarianism can move faster than anything. They can just say "wipe out that village, build the coal plant there, data center here, fab here.
Now that China is more effective, "it's easy because they're authoritarian". Before the argument was "authoritarianism can never be as effective as free-market democracy".
>3.) If it's red tape and regulation holding the US back, then that's clearly not "capitalism."
It's real world capitalism, not some fantasy some guy imagined removing all warts.
Unfortunately its not so cheap anymore as everyone ramped prices up of course.
Last year I could still get 32GB of DDR4 for under $60 from chinese brands.
I just upgraded my 2008 Thinkpad R61i to 8GB of DDR2 a few months ago while I was also upgrading to a core2duo.
DDR2 and DDR3 are still in active use by SBC manufacturers.
If a place can do it, another place, with a huge track record on manufacturing and lately expanding all kinds of tech, can.
Whether or not you feel like those are good overall (I do), they do actually also slow things down.
Yes, like how it helped western industry early on. Or, well into the 70s for the most part.
https://www.techspot.com/news/112502-memory-prices-tipped-fa...
what if demand keeps rising faster than production capacity is deployed?
We are in a bubble which will be burst the moment the world starts retaliating against the US' 20+ year history of supporting genocide and committing war crimes unabated.
Buy the AI toys while you still can.
Edit: Okay, this doesn’t mean that that’s actually possible in the short-term, so I think you’re right. But that means as the silver lining, in the medium term horizon there’ll be enough supply again? :’)
Memory is a cyclical market that has historically rewarded conservatism [1].
Counterpoint: there is enough demand from enough capital-rich customers that they may be willing to shoulder the capital risk.
[1] https://www.ldeepai.com/tech-hub/dram-industry-consolidation... Sorry for the slop link, it has a good chart from a solid source
This is a good hypothesis. Curious if anyone has data on the failure rates of new entrants in semiconductors based on how frothy it was on founding.
On one hand, more demand makes selling easier. On the other hand, a shortage makes your input costs (consumable and capital) pricier.
EDIT: It seems like the 2 to 3 year lead time and a crowding effect from new entrants historically made booting up a fab into a boom a bad bet [1]. (The article argues, convincingly, that this time may be different.)
[1] https://www.uncoveralpha.com/p/every-memory-cycle-ends-the-s...
So essentially, due to technological progress and other factors inducing price collapses (or at least cycles), you can’t start stockpiling insane amounts of finished-product semiconductor, which means you can’t scale production at current technology levels to infinity either?
Like, take out the price sheets for the Apple Car. Then sell me an AI tower at those price points.
The hard part is the GPU architecture. Apple Silicon was designed with a laser focus on raster efficiency (similar to AMD's GPUs) which makes a lot of sense for highly mobile hardware, but is a crippling mistake for high-performance compute. Apple's largest Ultra chips are hamstrung with SOC-tier GPU performance, their highest-end desktops are outperformed by Nvidia's laptop offerings. Apple has to find a way to scale upwards without imposing too much architectural strain on their cheaper hardware like the iPhone and Macbook. Nvidia has already solved this issue; full CUDA compute stacks are usable on extremely cheap GPUs like the Nintendo Switch's Tegra SOC, or the Mac Mini-sized Jetson boards.
In terms of "who needs to redesign more to address the market", Apple has a lot of technical debt to unearth before they catch up to Nvidia. And if they do catch up, Nvidia will still support Linux and other differentiating features that Apple refuses to implement. It definitely feels like Nvidia is closer to a winner with the Spark than Apple is with the Mini or Studio.
Those Macbook Neo users would be very reliant on Apple intelligence, enough maybe to pay for a service with it. I think Apple's much happier going this path.
If it's an "or," absolutely. But if it's an or, they should be prioritising Macbooks over the Mac Mini Doug Brooks is discussing.
When we breach the "and" of memory supply sufficient to allow for more Mac minis (and Mac Studios), I think it would make sense to consider relaunching Xserve (with new branding, of course) as a consumer/small business product.
The writing has been on the wall since 2019. Apple doesn't like the old way of computing, their goal is to expand the ecosystem by prioritizing install-base and then pushing first-party service offerings like they did with the iPhone. And like they did with the iPhone, Apple is great at ignoring power users to focus on features that make them more money.
You may be waiting a few decades for this type of product, memory supply be damned.
At the $150 mark (which is probably accurate factoring in lifetime service spend), that's a $10,000 minimum return on the 64x Macbook Neos. Apple can charge that type of premium on consumer hardware, but they're in no position to command $10,000 margins on professional hardware. They're not Nvidia, Apple has always been LARPing as an HPC vendor.
Now that the Mac Pro is depreciated, Apple's plan to pivot to service offerings seems set in stone. That's the "want it all" attitude they've adopted with the App Store.