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[Radical_3d]

I think it speaks volumes to the profit margins DRAM is making now, due to Ai demand.
That a company like Samsung is willing to sacrifice other divisions, to make more profits on this one product.
Ai is like a plague that consumes everything in it's path.

And all the money is imaginary. AI isn't selling like iPhones. It's just that nVidia invest in OpenAI, with the condition that they use that invest to buy them chips to have a great computational power so they can sell nothing. All boosted with the investor's money of the inflated share price. Sony and Microsoft must have numbers on when someone is going to notice this, and so they put next generation into late 2027.

 

[winjer]

Sure, short term DRAM prices are bringing in the cash but potentially damaging their mobile market share for the short term gains is not very smart.

I'm sure Samsung will also not sell to other phone companies, unless they pay as much as AI companies.
And I bet the other DRAM makers will also do the same.

 

[Elios83]

The more people talk and panic about this stuff, the more companies will find execuses to raise prices even more than necessary.
The only answer is not to buy stuff at outrageous prices. It's not like companies can forget about consumer electronics and the fact their end users will always be humans.

 

[Zathalus]

Samsung Has Reportedly Rejected A DRAM Supply Request From Its Own Mobile Experience Division As It's Focused On Maximizing Profitability

FFS, Samsung is now refusing to sell DRAM to it's other divisions, to make more profits by selling for AI.
I bet phone prices are going to take a huge jump in 2026.

This could maybe be due to competition laws. Samsung cannot give itself a favorable rate vs other potential customers. So it's going to be a trade off of DRAM profits vs the phone market.

 

[winjer]

This could maybe be due to competition laws. Samsung cannot give itself a favorable rate vs other potential customers. So it's going to be a trade off of DRAM profits vs the phone market.

They sold it before, to other company branches. There was no law stopping it.

 

[StereoVsn]

I'm sure Samsung will also not sell to other phone companies, unless they pay as much as AI companies.
And I bet the other DRAM makers will also do the same.

I wonder if Chinese phone manufacturers will have access to their domestic stuff that is getting close enough to use. Kind of like Huawei is using local SoC supply despite scaling issues.

And outside US (and really here as well to an extent with Motorola, OnePlus, TCL, etc), Chinese phones sell very well.

 

[winjer]

I wonder if Chinese phone manufacturers will have access to their domestic stuff that is getting close enough to use. Kind of like Huawei is using local SoC supply despite scaling issues.

And outside US (and really here as well to an extent with Motorola, OnePlus, TCL, etc), Chinese phones sell very well.

China is also ramping up AI server buildup.
Just this week we got news that they are now building servers outside of China, to bypass the ban of sale of Nvidia AI chips.

 

[Zathalus]

They sold it before, to other company branches. There was no law stopping it.

Yeah, but the transfer price cannot vastly undercut what they sell to clients. It's not an exact science or price range, but they cannot sell RAM to themselves and then charge an arbitrarily extreme price to other clients.

 

[negator2vc]

And all the money is imaginary. AI isn't selling like iPhones. It's just that nVidia invest in OpenAI, with the condition that they use that invest to buy them chips to have a great computational power so they can sell nothing. All boosted with the investor's money of the inflated share price. Sony and Microsoft must have numbers on when someone is going to notice this, and so they put next generation into late 2027.

Not all AI money is imaginary. The "hardware" money is far from imaginary.
And that's the biggest irony of the whole AI.
The only people that actually earn real money NOW from this are the ones that sell hardware.

 

[Montauk]

And all the money is imaginary. AI isn't selling like iPhones. It's just that nVidia invest in OpenAI, with the condition that they use that invest to buy them chips to have a great computational power so they can sell nothing. All boosted with the investor's money of the inflated share price. Sony and Microsoft must have numbers on when someone is going to notice this, and so they put next generation into late 2027.

'sell nothing' is an interesting way to describe OpenAI possibly reaching a $20b ARR by the end of this year, from a product that they only introduced 3 years ago.

They're not making profit yet. They're selling plenty of product, though. Their revenues are sky rocketing.

 

[UltimaKilo]

And all the money is imaginary. AI isn't selling like iPhones. It's just that nVidia invest in OpenAI, with the condition that they use that invest to buy them chips to have a great computational power so they can sell nothing. All boosted with the investor's money of the inflated share price. Sony and Microsoft must have numbers on when someone is going to notice this, and so they put next generation into late 2027.

It's financially unsound, possibly, but I do believe it will pay off… otherwise there's no way these companies will ever pay off that credit.

 

[Hudo]

And all of this because people upload dick pics to ChatGPT

 

[Montauk]

And all of this because people upload dick pics to ChatGPT

???

 

[kruis]

Not all AI money is imaginary. The "hardware" money is far from imaginary.
And that's the biggest irony of the whole AI.
The only people that actually earn real money NOW from this are the ones that sell hardware.

Unless that AI hardware isn't paid with hard cash but with shares in other companies.

 

[negator2vc]

Unless that AI hardware isn't paid with hard cash but with shares in other companies.

But is it so? They only case I know is nvidia.
Are other hardware makers also invested similarly in those AI companies?

 

[Montauk]

Unless that AI hardware isn't paid with hard cash but with shares in other companies

Yes, famously Nvidia isn't making truly insane amounts of hard cash every quarter.

 

[StereoVsn]

Yes, famously Nvidia isn't making truly insane amounts of hard cash every quarter.

Nvidia is basically making so much money that they are going throwing it left and right.

Hence OpenaI, Oracle, Coreweave, and other investments. Shovel maker making cash during the gold rush.

 

[Spyxos]

Samsung Has Reportedly Rejected A DRAM Supply Request From Its Own Mobile Experience Division As It's Focused On Maximizing Profitability

FFS, Samsung is now refusing to sell DRAM to it's other divisions, to make more profits by selling for AI.
I bet phone prices are going to take a huge jump in 2026.

All the signs are there, so if you haven't upgraded yet, it's your own fault.

 

[Radical_3d]

Not all AI money is imaginary. The "hardware" money is far from imaginary.
And that's the biggest irony of the whole AI.
The only people that actually earn real money NOW from this are the ones that sell hardware.

Yes, nVidia is very happy to be selling chips like hot cupcakes.