Nah. If there really is a crash and a sudden glut of AI GPUs and related hardware, it’ll drop the prices of everything PC-related real fast.
The hardware will absolutely, 100% continue to be used for AI stuff. Nobody is going to buy that stuff in bulk just to start desoldering chips. That would be stupid, because…
The demand for AI is just too damned high! If anyone can bid on OpenAI’s bankruptcy hardware sale, either one BIG player is going to take it all (read: Microsoft… Which was the plan all along I swear!) or it’ll be sold in batches and loads of small AI companies (including startups) will get it cheap.
Small companies are already reselling tokens on their tiny little hardware farms using open models like GLM and Qwen. Anyone with the hardware can do so, and there’s loads of money to be made doing it. So why would businesses bother trying to use that memory for anything else? They wouldn’t.
However, a huge sale will create a glut regardless, which will almost immediately drop prices by some huge amount. The demand will slowly go back up—because AI demand is still growing—but we’ll all get relief for probably six months to a year.
Listen to me: If that happens, that is when you want to buy a new GPU/PC! Wait like 2-3 months after OpenAI’s bankruptcy announcement (save that money), then spend it on the best hardware you can get. Because the demand for AI isn’t going anywhere. It’s just going to drop back down into reality: Where they only build data centers where it makes sense. As in, where there’s actually plenty of power available (or they can just install a zillion solar panels).
Is it, though? Most of OpenAIs customers are free users and outside of the coding sphere there isn’t a major usecase for LLMs. When the bubble pops and people will have to pay a lot more for their token usage, a lot of them will just turn away. The free users will never convert to a paid model as well.
Nobody is going to buy that stuff in bulk just to start desoldering chips.
Don’t underestimate Chinese vendors doing absolutely everything to turn a profit.
It’s the code generation and automation uses that are growing. I don’t know about casual use or using AI for office tasks.
AI providers that offer API access don’t have enough hardware to support the demand. They keep increasing prices (the roundabout way by slowing down requests, reducing the amount of included tokens in tiers, and replacing models with new ones that use more tokens) and that’s still not enough to reduce demand.
Using AI to code and automate stuff is probably its most effective use. But most people don’t see it. Is all business/enterprise stuff happening behind the scenes.
Nah. If there really is a crash and a sudden glut of AI GPUs and related hardware, it’ll drop the prices of everything PC-related real fast.
The hardware will absolutely, 100% continue to be used for AI stuff. Nobody is going to buy that stuff in bulk just to start desoldering chips. That would be stupid, because…
The demand for AI is just too damned high! If anyone can bid on OpenAI’s bankruptcy hardware sale, either one BIG player is going to take it all (read: Microsoft… Which was the plan all along I swear!) or it’ll be sold in batches and loads of small AI companies (including startups) will get it cheap.
Small companies are already reselling tokens on their tiny little hardware farms using open models like GLM and Qwen. Anyone with the hardware can do so, and there’s loads of money to be made doing it. So why would businesses bother trying to use that memory for anything else? They wouldn’t.
However, a huge sale will create a glut regardless, which will almost immediately drop prices by some huge amount. The demand will slowly go back up—because AI demand is still growing—but we’ll all get relief for probably six months to a year.
Listen to me: If that happens, that is when you want to buy a new GPU/PC! Wait like 2-3 months after OpenAI’s bankruptcy announcement (save that money), then spend it on the best hardware you can get. Because the demand for AI isn’t going anywhere. It’s just going to drop back down into reality: Where they only build data centers where it makes sense. As in, where there’s actually plenty of power available (or they can just install a zillion solar panels).
Is it, though? Most of OpenAIs customers are free users and outside of the coding sphere there isn’t a major usecase for LLMs. When the bubble pops and people will have to pay a lot more for their token usage, a lot of them will just turn away. The free users will never convert to a paid model as well.
Don’t underestimate Chinese vendors doing absolutely everything to turn a profit.
It’s the code generation and automation uses that are growing. I don’t know about casual use or using AI for office tasks.
AI providers that offer API access don’t have enough hardware to support the demand. They keep increasing prices (the roundabout way by slowing down requests, reducing the amount of included tokens in tiers, and replacing models with new ones that use more tokens) and that’s still not enough to reduce demand.
Using AI to code and automate stuff is probably its most effective use. But most people don’t see it. Is all business/enterprise stuff happening behind the scenes.