Key Takeaways
1. The memory market is struggling, with prices for laptops dropping below those of memory kits, indicating a severe shortage.
2. OpenAI is accused of hoarding global memory supplies, including consumer DDR5 kits, affecting availability for gamers and other consumers.
3. Reports suggest OpenAI employees are actively buying up memory from retail stores, limiting access for competitors and impacting various tech sectors.
4. Despite claims of hoarding, OpenAI is not profitable and reportedly needs $400 billion in funding to meet its obligations.
5. Concerns are rising about the sustainability of OpenAI’s actions and the potential for an AI bubble, as highlighted by investor Michael Burry.
The memory market is really struggling right now. To illustrate just how dire the situation is, you can find a refurbished Acer Predator Helios Neo 14 gaming laptop with an RTX 4070 and a two-year warranty for less than the cost of a Corsair DDR5 64 GB memory kit. Things are looking bleak, and the well-known leaker Moore’s Law Is Dead is pointing blame at OpenAI.
OpenAI’s Alleged Actions
Moore’s Law Is Dead claims that OpenAI is not just hoarding a significant portion of the global memory supply, but is also said to be buying up consumer DDR5 kits. Reports suggest that OpenAI employees are visiting retail stores to scoop up as many DDR5 kits as they can find. This information has been relayed to MLID by multiple sources, including retailers and RAM manufacturers.
Impact on Gamers and Consumers
It’s noteworthy that these supposed OpenAI workers are purchasing not just ECC memory but also DDR5 modules aimed at gamers. This strategy by OpenAI appears to prioritize limiting competitors’ access to fast memory, which is negatively impacting not only rival companies but also gamers and regular consumers. Almost every tech sector that relies on RAM, from GPUs and SSDs to laptops, is experiencing difficulties due to the memory shortage. We’re already preparing for potential price hikes in laptops and GPUs.
OpenAI’s Financial Situation
The idea that OpenAI is hoarding the global DRAM supply implies that the company has significant cash reserves. However, the truth is quite different. OpenAI has never been profitable and isn’t expected to be until 2023. In fact, it’s believed that the company requires an astonishing $400 billion in funding over the next year to meet its existing obligations.
It’s perplexing that a company in such urgent need of liquidity, to the tune of hundreds of billions, would be aggressively trying to purchase as much memory as possible. While we can’t definitively say if this is just a huge AI bubble ready to pop, Michael Burry thinks it could be, and OpenAI is certainly giving us plenty of reasons to side with the investor from The Big Short.
Source:
Link