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Oh good, computer chips are set to explode in price again

If you’ve bought a computer in the past few years, you may have noticed that RAM chips are much more expensive. Unfortunately, this situation looks set to worsen:

Computer chips got RAMmed

As we reported, generative AI has failed to live up to its promise. It’s also clearly in the late stages of a speculative bubble which looks primed to burst. Additionally, the world recently discovered that seemingly:

  • AI services cost a lot more to run than we thought.
  • AI services make a lot less money than we thought.
  • Modern data centres may not be financially viable because they have to replace their chips so often.

This makes it the strangest time for a company to abandon its profitable and useful business. Unless Micron knows something we don’t, it’s like they’re boarding the Titanic just as everyone else runs for the lifeboats.

Here’s what Micron are saying:

The AI-driven growth in the data center has led to a surge in demand for memory and storage.

Micron has made the difficult decision to exit the Crucial consumer business in order to improve supply and support for our larger, strategic customers in faster-growing segments.

And here’s what commentators are saying:

It’s going to affect the console market too, by the way:

Inflation

The last thing the world needs right now is for another product class to massively inflate in price, and yet here we are.

Let’s hope the AI bubble bursts before Micron are able to go through with this.

Featured image via pexels

By Willem Moore

This post was originally published on Canary.