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Microsoft doesn't know what to do about the memory pricing crisis Microsoft is causing (www.pcgamer.com)
submitted 1 month ago by to c/technology@lemmy.world
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[–] 55 points 1 month ago (1 child)

Episode 7893 of corporations artificially creating problems to make profit by selling the solution. Just to then fail at solving the problem of their own creation.

Brilliant economic system. You can marvel at its ingenuity and just get lost in it.

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  • [–] 15 points 1 month ago (2 children)

    They aren’t artificially creating this problem, they are inadvertently creating this problem.

    AI companies need RAM and other compute components to feed the AI beast which drives up demand, and cost but reduces supply for everyone, including their Xbox and Surface divisions.

    Given their enterprise divisions make vastly more money than their consumer divisions, nothing will change.

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  • [–] 12 points 1 month ago (2 children)

    The problem is artificial, because 95% of all this 'AI' is useless, pointless, and a massive waste of resources. Nobody asked for it, and practically nobody is using it.

    Even in cases where a chatbot is helpful, a small, local model is more than enough. Not a single soul needs a 50T parameter model for anything. Nobody on the planet uses AI image enhancement or item removal.

    Almost all of this shit is purely made to inflate the bubble, and serves no other purpose. All the while ruining many other industries, people's hobbies, ease of finding factual information online, etc.

    The problem is artificial, because it was created pretty much deliberately, for no particular reason other than profit.

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  • [–] 3 points 1 month ago

    It's a solution in search of a problem.

    And it's a bunch of misanthropic sociopaths with main character syndrome who read scifi novels and saw the warnings as a guideline because "I'm the super smartest, I can implement it correctly, and I have to be first, because those other guys won't do it correctly"

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  • [–] 1 point 1 month ago

    Just because you and your friends don’t use it, doesn’t mean it isn’t being used. If 95% of AI is useless then why are hardware prices so high? The demand must’ve dropped off by now if all the hardware they bought to date is going unused, because why would they be buying more?

    Companies are definitely using AI, and not just as chatbots. I use it everyday as a search tool, to manipulate data and perform other tasks which saves me time because I no longer have to do it manually.

    Most mid-large sized companies have terabytes or even petabytes of data that their AI tools are reasoning over, which requires more than the processing power of your small local model running on a Mac Mini.

    I don’t disagree with you that it is impacting other industries and consumers, but as long as customers have a use for it and are willing to pay, the AI industry will continue.

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  • [–] 6 points 1 month ago (1 child)

    But does anyone need ai companies?

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  • [–] 1 point 1 month ago (1 child)

    The fact that the major players are still in business means someone thinks so.

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  • [–] 5 points 1 month ago (1 child)

    Are they still 'in business' though? They're burning through money they don't even have at a never before seen rate. Just to make barely useful software that works 20% of the time at best.

    I feel like it's the same as saying the banks and real estate companies were 'still in business' in 2008. Naturally, time will tell if it's the same cycle repeating. So far everything seems to be pointing in that direction.

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  • [–] 1 point 1 month ago

    Many companies operate without making a profit, sometimes it’s because they aren’t making enough money and sometimes they invest it back into the business.

    Regardless, SpaceX is about to go public with a valuation of $1.8 trillion, and they arent profitable.

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