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Nearly the entire reason we're in this mess is because RAM/SSD/HDD makers are terrified of AI bubble bursting. Long-term contracts, not building new fabs - the
by glub 2mo ago
Nearly the entire reason we're in this mess is because RAM/SSD/HDD makers are terrified of AI bubble bursting.
Long-term contracts, not building new fabs - they're in full on hedging mode right now.
- leoc 2mo agoSeemingly the AI bulls are either not sufficiently optimistic, or not sufficiently wealthy(?!), to build new fabs as joint ventures with the manufacturers in which they agree to assume most of the downside risk?
- no-name-here 2mo agoThey signed long term contracts for the hardware delivery over years. AI investment is approaching 1 trillion per year and expected to grow to well over 1 trillion per year. [1] Even over their many years, projects like the Manhattan Project, the Apollo Program, or the U.S. Interstate Highway System never added up to that. [2] Is your argument that there is insufficient AI spending at present as they aren’t also taking on building their own fabs? [1] https://www.pwc.com/gx/en/news-room/press-releases/2026/global-investment-in-ai-infrastructure.html https://www.pwc.com/gx/en/news-room/press-releases/2026/glob... [2] https://www.aljazeera.com/news/2026/2/19/visualising-ai-spending-how-does-it-compare-with-historys-mega-projects https://www.aljazeera.com/news/2026/2/19/visualising-ai-spen...
- m4rtink 2mo agoIf the long term contact are with any AI companies, then good luck getting anything back in bankrupcy proceedings!