alt Hacker News> It's not like they are squeezing the market in some cartel price-fixing racket
You don’t know this with certainty, do you?
Replies
brookst • yesterday at 10:59 PM
What in the world does a 20-year-old scheme and prosecution have to do with it?
Besides, when demand outstrips supply you don't have to fix prices. Why would you? They cannot deliver all of the RAM people want. Think about it for a minute: how would price fixing even work?
(and don't get me started on the ridiculous "they're switching from DDR3 to HBM" part of that wikipedia article...)
This time is purely supply and demand.
Companies (CRWV, etc) are borrowing at 10%+ interest rates to buy NVidia GPUs that NVidia makes 75% gross margin on. I repeat, companies are selling junk bonds to buy GPUs at a 300% markup. Cocaine dealers probably don’t even make 75% gross margins.
Other companies (OpenAI, etc) are also borrowing at 10%+ interest to rent the GPUs to train LLMs.
All of these GPUs need a ton of RAM. There is a fixed supply of RAM. There is insane demand for RAM.