TLDR:
OpenAI made a deal to secure 40% of the global supply of wafers from both SK Hynix and Samsung (2 of the 3 large providers of RAM) ostensibly for project Stargate server farms. But it gets so much worse, they made both deals on the same day without advising the other company, and have not provisioned any way to actually use (make chips from) the wafers. It looks more like they’re just trying to keep RAM out of the hands of their competitors.
From there the laws of supply and demand and panic buying by everyone else took over, RAM prices are going to the moon, and Micron (the third big provider) dropped out of the consumer market because they’re gonna make bank in the server market as the only unencumbered company. Consumer general purpose computer customers are royally boned. This will flow through into the SSD market as well.
In short, Fsck the AI industry in general and Fsck ‘OpenAI’ and Sam Altman in particular. If you pray, pray that this deal gets a legal injunction in South Korea, coz you know the US will just applaud this fsckery.
When tf investors are going to ask for returns on their investments? That's the only thing that can pop this bubble.
They're probably the only reason it hasn't popped yet: still searching for someone to hold the bag. But the longer they wait, the bigger the number gets and the less likely it is for them to find one. Eventually someone's going to cut their losses and it's going to be a bloodbath.
OpenAI and Anthropic are going public soon. They're trying to offload the bag on the public.
What do companies must disclose before going public?
Oh wait, this US administration doesn't give a fuck about that. I'm fully expecting IPOs with no documentation other than 'trust me bro'.
They would just have GPT vibe draft some good looking financial statements.
Of course. Who's checking anyway.
Me rn: BLINK, MOTHERFUCKERS!
Just a few more billions guys, real close now! Maybe a few dozen more after that, but it's really getting there!
Oh, look a squirrel!
They probably don’t care. Since it drives the entire stock market up. They probably make big bucks on the other side trading derivatives on the financial market making returns that will outgrow the investments in OpenAI. It’s a convoluted version of a pump and dump. Pump up OpenAI so they can dump NVidia options.
Also OpenAi will go public soon. The dot com bubble didn’t pop until all those companies that never made a dime went public. Since investors were then able to dump their holdings into retail investors.