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If all manufacturers jump into serving the ai market segment. Can this not be a opportunity for new entrants to start serving the other market segments? How h

If all manufacturers jump into serving the ai market segment. Can this not be a opportunity for new entrants to start serving the other market segments? How hard is it to start and manufacture memory for embedded systems in cars, or pc?

nice_byte 9mo ago
No, because if you have the capacity to make e.g. ram chips it makes more economic sense to sell them for ai bucks. Serving the other market segment is an opportunity cost unless you're selling to them at same prices. In the long run though if enough players emerge the price will eventually come down just due to oversupply.
- SunlitCat 9mo ago
  Not quite. Making specialized DRAM chips for AI hardware needs, requires high tech components. Making low(er) end DRAM chips for consumer needs might be easier to get started with. I am pretty sure, in the next year we will see a wave of low end ram components coming out of china.
  - baobabKoodaa 9mo ago
    Best of luck with your folksy mom & pop DRAM factory.
  - Imustaskforhelp 9mo ago
    Yea I think the same too. China is notorious for price dumping but this might be good for the end consumer.
lexicality 9mo ago
If it was easy there would be more memory manufacturers, rather than 2-3 wholesalers who sell to the people who put badges & rgb on it
Imustaskforhelp 9mo ago
One might think so but the AI companies actually lose a lot and I mean a lot of money in these deals. Even if they might sell their inference and everything, they still wouldn't be that much profitable. So like, the key point is that a ram company can supply openAI ram and get some really high quick bucks which would be even more than if they were to create thier own datacenters,run open source models in them, provide inference in say open router. Now you might ask: Is openAI or these AI companies mad for burning so much money? And I think you might know the answer to that.
vee-kay 9mo ago
Good luck fabricating new microchips. It is a very expensive and difficult proposition.

nice_byte 9mo ago

No, because if you have the capacity to make e.g. ram chips it makes more economic sense to sell them for ai bucks. Serving the other market segment is an opportunity cost unless you're selling to them at same prices. In the long run though if enough players emerge the price will eventually come down just due to oversupply.

SunlitCat 9mo ago
Not quite. Making specialized DRAM chips for AI hardware needs, requires high tech components. Making low(er) end DRAM chips for consumer needs might be easier to get started with. I am pretty sure, in the next year we will see a wave of low end ram components coming out of china.
- baobabKoodaa 9mo ago
  Best of luck with your folksy mom & pop DRAM factory.
- Imustaskforhelp 9mo ago
  Yea I think the same too. China is notorious for price dumping but this might be good for the end consumer.

lexicality 9mo ago

If it was easy there would be more memory manufacturers, rather than 2-3 wholesalers who sell to the people who put badges & rgb on it

Imustaskforhelp 9mo ago

One might think so but the AI companies actually lose a lot and I mean a lot of money in these deals. Even if they might sell their inference and everything, they still wouldn't be that much profitable. So like, the key point is that a ram company can supply openAI ram and get some really high quick bucks which would be even more than if they were to create thier own datacenters,run open source models in them, provide inference in say open router. Now you might ask: Is openAI or these AI companies mad for burning so much money? And I think you might know the answer to that.

vee-kay 9mo ago

Good luck fabricating new microchips. It is a very expensive and difficult proposition.