For the past two years, the narrative around inflated GPU and RAM prices has been the insatiable AI demand eating up wafer at TSMC and every module on Earth must go to AI data centers. However, th…
The ridiculous AI build out has resulted in inflation, and the ECB has started ramping up interest rates in response. When investors no longer have easy access to free money, they can no longer subsidize the AI industry. Microsoft has already started laying off people, anticipating the crash. Apparently Nvidia isn’t feeling the pressure yet, but they will. Eventually data centers won’t be buying chips any more, and that’s when the chip prices should drop back to normal.
The ridiculous AI build out has resulted in inflation, and the ECB has started ramping up interest rates in response. When investors no longer have easy access to free money, they can no longer subsidize the AI industry. Microsoft has already started laying off people, anticipating the crash. Apparently Nvidia isn’t feeling the pressure yet, but they will. Eventually data centers won’t be buying chips any more, and that’s when the chip prices should drop back to normal.