mhoyeTo spell this out clearly, the reason RAM has quadrupled in price is that a huge quantity of RAM that hasn't been produced yet has been bought with money that doesn't exist to populate GPUs that also haven't been produced to go in datacenters that haven't been built powered by infrastructure that may never exist to meet a demand that doesn't exist at all to make profit margins that mathematically can't exist while economists talk about this thing they call the "rational markets hypothesis".
Alex Stade@mhoye it’s a hedge. And it’s brilliant. It’s very much rational from a financial point of view. And it furthermore points to how production is planned.
A farmer will not buy more cows to produce milk than that which he can sell. If a temporary demand surpasses the capacity of his cows, he’ll get more cows if he can justify the demand over a period of time.
So Sam will hedge on his chips, which could otherwise be bought by someone else. And production will over time weather this.