this post was submitted on 24 Dec 2025
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[–] echodot@feddit.uk 79 points 17 hours ago (8 children)

I don't understand what their long-term plan is here. Even if AI isn't a bubble eventually all of the AI companies are going to get to a point where they don't need more compute because they're working on algorithmic optimisations because they decide that that's cheaper.

Then they're going to have to pivot back to the consumer market. Except by that point it won't even be a consumer market because China will have eaten their lunch.

[–] Zeroc00l@sh.itjust.works 35 points 15 hours ago (1 children)

The plan is to continue making bank until the companies are done with them, then sell to consumers again without missing a beat.

Source: the GPU shortage we just went through.

Future source: the CPU shortage scheduled for 2026.

[–] echodot@feddit.uk 14 points 14 hours ago (2 children)

That's my point though they can't do that.

The market isn't just going to wait around for them to get around to selling to consumers again. China is going to see an opening and they're going to manufacture their own chips and make bank. Then when the traditional manufacturer is getting their head out of their arses then realise there market share has vanished. All 100% their fault.

They have decided to shoot themselves in the foot because someone's convinced them they won't ever need legs ever again.

[–] pelya@lemmy.world 6 points 12 hours ago

Eh, Chinese manufacturers are also desperately trying to catch up with AI hype. In any case, we'll see some new brands on the market, and it's not a bad thing, and I would not spend my time worrying about giant rich corporations.
My actual worry is that once RAM prices go up, they won't go down for quite some time. If we get another bubble after AI bubble pops, the prices may not decrease at all.

[–] Lfrith@lemmy.ca 1 points 12 hours ago

I hope China moves to Linux once they get around to pushing their own consumer PC parts and move on from Windows. It's just madness to me that countries will use OS of countries they aren't on good terms with and use it to do important work on it and store important data on it.

[–] deltaspawn0040@lemmy.zip 26 points 17 hours ago (1 children)

These companies are controlled almost entirely by people who only really care about what the stock price will be sometime in the next few years or so.

[–] Chonnawonga@sh.itjust.works 4 points 8 hours ago

*quarters, or even months

[–] nightm4re@feddit.org 23 points 12 hours ago (1 children)

I read a great article recently that tries to analyze what exactly went down and for what reasons. And most importantly, the effects it's going to have on different hardware prices: https://www.mooreslawisdead.com/post/sam-altman-s-dirty-dram-deal

[–] silasmariner@programming.dev 6 points 12 hours ago

Yeah that's widely considered to be the article about it tbh

[–] mnemonicmonkeys@sh.itjust.works 14 points 6 hours ago

I don't understand what their long-term plan is here.

They most likely don't have one. Keep in mind that tech bros and C-suite execs are sociopathic dumbasses. We saw this with AAA gaming studios and private equity where they just assume line will continually go up

[–] thatonecoder@lemmy.ca 8 points 14 hours ago (2 children)
[–] M0oP0o@mander.xyz 6 points 14 hours ago* (last edited 14 hours ago) (1 children)

We would need a better general network for that. Remember stadia? Nothing has changed since then, hell some areas have even lost some capacity.

[–] SkyeStarfall@lemmy.blahaj.zone 2 points 9 hours ago (1 children)

I'd you're talking about cloud computing for gaming specifically (as you can of course use cloud computing for, well, everything), then maybe it's not good enough in the US, I don't know enough about that area to say, but networking is definitively more than sufficient in Europe.

[–] M0oP0o@mander.xyz 1 points 2 hours ago* (last edited 2 hours ago)

Not american, But most of the world does not have the network. And Europe might have a good enough network, but not everywhere, and who knows if the current network will handle the sort of extra load that moving everything off local hardware would create.

[–] CoffeeTails@lemmy.world 3 points 12 hours ago
[–] Lfrith@lemmy.ca 6 points 12 hours ago

Yeah people will probably turn to China when it comes to consumer pc hardware in the future like how when it comes to drones its been primarily just China actually interested in selling to regular people.

[–] ZoteTheMighty@lemmy.zip 1 points 48 minutes ago

How dare you suggest that there is a future beyond next quarter!

[–] Nighed@feddit.uk 1 points 11 hours ago

The companies making the ram chips are not the ones making motherboards. They just want to sell their product for as much as they can.

Shutting down your entire consumer business does seem a bit short sighted though - keep the doors open for the future.