Memory Companies Have Destroyed the Consumer Market(gamersnexus.net) |
Memory Companies Have Destroyed the Consumer Market(gamersnexus.net) |
And I am a SWE.I am not making bad money. I can't imagine what others are going through.
These people are the main reason why AI companies have unlimited funding, and can afford to buy global RAM supply for years in the future despite their expenses exceed revenue by billions.
I would try to solve this by making the market structure reflect the underlying difficulty: we have to decide what capacity to produce years in advance, to construct the memory fabs. So this should be a futures market, and a capacity crunch would affect short-term-futures, but leave full term futures at the same price. Because the companies supplying the memory can just construct more capacity to fill those futures at the same cost regardless of the AI demand.
Same way nVidia did through the crypto insanity - make sure they're supplying enough to the consumer market so it doesn't get completely destroyed and pulls down the other parts of the consumer market they're reliant for long term success.
The question of choice between a profitable vs unprofitable venture is easy. But yeah, to what extent is choosing profitable instead of VERY profitable a breach of duty to shareholders?
memory companies could have attempted to protect consumers, at least a little, but the AI money machine goes brrrr
Well if your thesis is that they should have acted differently, then we should blame the laissez-faire capitalists.
When a few people have so much wealth that they are no longer price-sensitive, they bid up the price of everything and anything of value be it stocks, real estate, computer hardware, fine arts, sports teams, etc.
The result is that a business which tries to make quality products at reasonable prices will fail. They aren’t luxurious enough for the people with money. They aren’t cheap enough for the people without. Customers in the middle hardly exist. Any valuable good that is genuinely scarce will inevitably become a luxury.
Yes, it's the manufacturers fault, not the unbelievable market demand.
We are all Capitalists, until the Market comes after the stuff we love.
Shorting doesn’t only require you to be right. It requires perfectly timing when the market will realize you’re right.
> Contrary to what many believe, U.S. corporate law does not impose any enforceable legal duty on corporate directors or executives of public corporations to maximize profits or share price. The economic case for shareholder-value maximization similarly rests on incorrect factual claims about the structure of corporations, including the mistaken claims that shareholders “own” corporations, that they have the only residual claim on the firm’s profits, and that they are principals who hire and control directors to act as their agents.
[0] https://corpgov.law.harvard.edu/2012/06/26/the-shareholder-v...
avoiding the destruction of good faith with consumers is a legitimate business interest