The Kekistani Assembly of Experts - AI Crash Is Coming

AI Crash Is Coming (reply)

JoFrance — Thu, 02 Apr 2026 23:54:05 +0000

What a comedy of errors! That's a lot of memory. They could still sell the memory to other companies that have servers, but they screwed themselves because they had no binding agreement with OpenAI. What a costly mistake and then they screwed themselves even further by killing their consumer memory division. Its AI insanity.

I'll take some of the DRAMs off their hands (reply)

Cornpop Sutton — Tue, 31 Mar 2026 05:49:42 +0000

If there is a big enough inventory of the server grade chips it should be justifiable to create board level interface circuitry that adapts it to PC use. Generally it means stuff like more bits of ECC.

I'll take some of the DRAMs off their hands (reply)

FSK — Tue, 31 Mar 2026 02:43:14 +0000

The issue is "memory for servers" and "memory for consumer devices" are completely different things. The memory manufacturers are screwed, because now they're stuck with inventory they can't sell. Regular customers are screwed, because the AI firms bid up prices and made a fake bid for memory.

They memory manufacturers can retool back to making memory for consumer devices, but I believe that has a switching cost.

I'll take some of the DRAMs off their hands (reply)

Cornpop Sutton — Tue, 31 Mar 2026 02:07:11 +0000

The inflation of common memory devices has become fucking absurd. I bought a cheap assed bottom of the line Kingston SSD in 2018 for about $30 and the same product - no new generation, old technology - now sells for $100+.

Repackage the DRAM into SSDs and M.2 devices for consumers, price it reasonably and it will fly out of inventory.

One other element of the AI bust is dramatically increased fuel costs. These AI centers will make no sense at $200/bbl oil.

AI Crash Is Coming

FSK — Mon, 30 Mar 2026 23:36:51 +0000

This story is hilarious.

https://timesofindia.indiatimes.com/technology/tech-news/popular-twitter-user-explains-how-sam-altmans-openai-may-have-caused-the-worst-consumer-hardware-crisis-with-purchase-orders-that-were-never-real/articleshow/129879770.cms

OpenAI put in an order for 40% of the memory industry's output for 2026. They shuttered their consumer memory division and put all their factories on making memory for OpenAI.

However, oops, OpenAI was having trouble raising money. It turns out their "letter of intent to purchase" was non-binding. They backed out of the deal, and now the memory manufacturers are stuck with a bunch of memory they can't sell.