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Their risks are none. They are not increasing capacity, only selling the available one to the highest bidder. Whenever these AI companies run out of money, thes
by Maken 10mo ago
Their risks are none. They are not increasing capacity, only selling the available one to the highest bidder. Whenever these AI companies run out of money, these producers can simply resume their regular business.
- m4rtink 10mo agoNot sure about DRAM companies, but many businesses would still go under if they sold their annual production to a company that then goes bankrupt and won't pay anything for the delivered goods.
- sgc 10mo agoHopefully they get paid more than once a year. Their risk is completely dependent on 1. the net X days until they are paid, and 2. How fast they delay shipment when/if a payment is delayed.
- walterbell 10mo agoe.g. dotcom DSL and CLEC providers, https://www.sfgate.com/bayarea/article/dsl-providers-dropping-with-dot-com-bust-2961646.php https://www.sfgate.com/bayarea/article/dsl-providers-droppin...
- bigbadfeline 10mo agoEverything is prepaid, just like you buy RAM online.
- redwood 10mo agoIt only depends on whether they get addicted to the high prices.. as long as they can withstand a collapse in the prices then you're right they have minimal risk
- yifanl 10mo agoAssuming they haven't massively changed operations to crank up supply, which seems to be the case, they shouldn't be massively hurt with a price drop. If this price goes on for a longer period though, I assume that won't be the case.
- redwood 10mo agoWell an example would be if they for example took out massive debts on the back of an expected Revenue stream