Comment on When the AI bubble bursts..
jj4211@lemmy.world 1 week ago
The RAM that has been sold will not be viable for desktop systems, but especially with manufacturing capacity build up, you’d have memory vendors a bit more desperate to find a target market for new product. Datacenter clients will still exist but they could actually subsist on the hypothetical leftovers of a failed buildout, so consumer space may be their best bet.
TranquilTurbulence@lemmy.zip 1 week ago
I’m assuming RAM factories are investing in new production lines to meet the increased demand. This means there should be ample capacity to spare when demand decreases. That’s the ideal time to purchase those 500 GB of RAM for all your Chrome tabs.
The plan is that when interest rates rise again, investors won’t have access to cheap loans and AI companies won’t be able to build more data centres. This should lead to a demand collapse and manufacturers being left with surplus capacity. I doubt they can reduce production quickly enough, so they’ll likely push cheap products onto the market for a while.