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Hyperscalers are buying all the chips to then rent them to us later

7 points by adelks ↗ HN
This may sound alarming, but it appears as simple math to me

1. Chip price increase applies to everyone, including hyperscalers 2. I assume most of consumers refuse to pay for such ridiculous prices. 3. Hyperscalers pay the price because they expect return on investment 2. We, consumers, are actually the end-users of the chips they bought

It appears then that Hyperscalers are outbidding us at buying chips, then will make us pay back the ridiculous price they outbid us with through renting them back to us.

The way out seems simple: don't pay for AI and wait till one can afford chips for local (or federated) AI.

But there's the whole b2b market that I don't know what to think about

What are your thoughts?

2 comments

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stogot
Since when do you buy a direct A15? Or as Tranium? Or Maia? Or cobalt? Or graviton? Or a TPU? The hyperscalers are selling to enterprises not consumers. The apple chips are sold to consumers but they sell the whole hardware not just the chip
brazukadev
That's their plan but what happens when they don't make enough profit on those chips to buy more? we are about to know.