← Back to context

Comment by dist-epoch

8 hours ago

I'm not sure why people are upset. This is how Capitalism is supposed to work - resource allocation towards the most productive (in terms of Capital) usage.

Those who are best able to use a resource are willing to pay the most for it thus pricing out unproductive usages of it.

This is pure Capitalism.

If one is in general against Capitalism, yes, one can complain.

But saying "I want free markets" and "I want capitalism", but then complaining when the free markets increase the price of your RAM is utterly deranged.

Some will say "but Altman is hoarding the RAM, he's not using it productively". It's irrelevant, he is willing to pay more than you to hoard that RAM. In his view he's extracting more value from that than you do, so he's willing to pay more. The markets will work. If this is unproductive use of Capital, OpenAI will go bankrupt.

And the RAM sellers make more money, which is good in Capitalism. It would be irresponsible for them to sell to price sensitive customers (retail), when they have buyers (AI companies) willing to pay much more. And if this is a bad decision, because that AI market will vanish and they will have burned the retail market, Capitalism and Free Markets will work again and bankrupt them.

Survival of the fittest. That is Capitalism. And right now AI companies are the fittest by a large margin.

AI and Capitalism are the exact same thing, as famously put. We are in the first stages of turning Earth into Computronium, you either become Compute or you will fade away.

The market can remain irrational longer than the capacitors on my motherboard can resist bloating.