Jerry 🦙💝🦙Feb 23
ugh. hetzner just announced a pretty significant price increase. I'm going to have to start some serious downsizing before that happens😕
Show threadRenaud ChaputFeb 23
@jerry Be ready for all providers to announce some in the coming weeks, the hardware world is on fire right now thanks to OpenAI and their shenanigans to kill their competitors (and the AI bubble overall).
OVH announced a 10-15% increase as well.
Show threadJerry 🦙💝🦙Feb 23
@renchap I don't blame Hetzner, and I know they aren't the only ones. It's going to soon impact just about everything else we do online, I am guessing.
Show threadRenaud ChaputFeb 23
@jerry I foresee a 25% to 50% price increase in the next 2 years for everything requiring hardware, including servers, cloud but also laptops and phones. This will have a *huge* impact.
Show threadMelroy van den BergFeb 23
@renchap @jerry we already have 500% increases in ram?
Show threadRenaud ChaputFeb 23

@melroy In RAM yes, I was talking about the total price. RAM (and storage) is only a part of it, so a 500% increase in RAM prices do not raise the total price by 500%.

@jerry

Show threadMelroy van den Berg

@renchap problem is like you said, storage is basically nvne today, which is also made by the same machines.

Same with GPU, which also has ram on board. And recently China also has a high demand on cpus. So overall, CPU, GPU, Ram and storage prices increased. These are all essential components. Maybe GPU in a lesser degree on servers that only host websites. So as long as the Ai bubble doesn't burst, I predict more like a 100% to 200% price increase for a total machine.

@jerry

Feb 23 at 1:14pmWeb
Show threadMichael MathyFeb 23

@melroy @renchap @jerry

I bought last year an external SSD for 40 €.
Wanted to buy the same one for my daughter last week, it is now 120 €>

Show threadMelroy van den BergFeb 25

@michaelmathy @renchap @jerry somebody using Hetzner? They now also increased their prices with 35% due to the ram prices increase.

https://docs.hetzner.com/general/infrastructure-and-availability/price-adjustment/

Hetzner Price Adjustment - Hetzner Docs

Show threadMichael MathyFeb 25

@melroy @renchap @jerry

Yes using it for a blob storage for Borg Backup.

So now, OVH, Hetzner, 1password increased their price 30%, ram 500 %, SSD 300 %

But the good news is that AI increases the productivity of people by 4 % .... 😀

https://cepr.org/voxeu/columns/how-ai-affecting-productivity-and-jobs-europe

How AI is affecting productivity and jobs in Europe

Artificial intelligence promises to reshape economies worldwide, but firm-level evidence on its effects in Europe remains scarce. This column uses survey data to examine how AI adoption affects productivity and employment across more than 12,000 European firms. The authors find that AI adoption increases labour productivity levels by 4% on average in the EU, with no evidence of reduced employment in the short run. The productivity benefits, however, are unevenly distributed. Medium and large firms, as well as firms that have the capacity to integrate AI through investments in intangible assets and human capital, experience substantially stronger productivity gains.

CEPR
Show threadJerry 🦙💝🦙Feb 25
@michaelmathy I think Hetzner and OVH are likely quite cost sensitive/low margin, so I expect they are just leading the industry by a few weeks/months before just about every technology service raises their prices 10-30% @melroy @renchap
Show threadMichael MathyFeb 25

@jerry @melroy @renchap

Yes but I think that we will pay for everything that is more or less related to tech with an increase of 30 % and at the end just to gain 4 % of productivity? The world is crazy 😀

Show threadJerry 🦙💝🦙Feb 25
@michaelmathy the AI movement isn’t about us, though. If companies can save 4% AND raise their prices to compensate for AI driven inflation, that’s what they’ll do, especially when just the mention of chasing that 4% savings will make their stock price skyrocket. Yes, I know that is probably not a long term strategy, but the stock market lives only for today. And maybe till the end of the quarter. @melroy @renchap
Show threadIchinin   ✅🎯🙄Feb 23

@melroy @renchap @jerry

"So as long as the Ai bubble doesn't burst"

Hahahaha...