Comment by zettabomb
10 days ago
The entire capacity of RAM production is basically booked out, for at least the next year. All fabs have sold their allocations already, and it takes years to build a new one. As a result, no it will likely not ease up if demand continues like this, again for at least a year.
Also worth noting:
They sold their allocations to people who don't have a clear path to profitability, and were paid with massive amounts of money that don't exist in reality.
> and were paid with massive amounts of money that don't exist in reality
How's that possible?
You know how fractional reserve banking can create money out of thin air? In theory, the stock market can be used in the same way. Which is what the AI providers have been doing.
I agree to pay you within 90 days of receiving the product, which you'll send me in 6 months. You get to count this promise as income i've paid you right now. 9 months later I might or might not have the money to pay it for real.
The principle works for stable regular businesses where invoices do get paid, not for bubbles.
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Credit.