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Hetzner Prices increase 30-40%

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31–40 of 662 posts

Re: Hetzner Prices increase 30-40%

#31
post #7

Earlier quoted context omitted.

https://www.hetzner.com/pressroom/statement-price-adjustment... Text in full: > There have been drastic price increases in various areas in the IT branch recently. That is why, unfortunately, we must also increase the prices of our products. > The costs to operate our infrastructure and to buy new hardware have both increased dramatically. Therefore, our price changes will affect both existing products and new orders…

A hosting company referring to the core of their business as "the IT branch" doesn't instil confidence.

I guess it's just a bad translation and means IT sector. German word: "IT-Branche"

Re: Hetzner Prices increase 30-40%

#32
post #20

Earlier quoted context omitted.

AI bubble won't last forever when a lot of compute is burned at a loss just so people can generate AI videos of sharks driving cars for social media shorts. It will burst at some point, at which HW manufacturing will have to lower prices if they still want to have enough sales to stay in business, since most of their current sales boom comes from HW they haven't even made yet. OpenAI can't keep losing investor money…

I really don't think so. I feel like we're at a takeoff. Senior engineers using AI coding are 10x more productive. My output has jumped dramatically. I'm a senior engineer and built six nines, active-active systems that moved billions of dollars a day. I am absolutely a beast with these models. I can replace an entire team just by myself. I'm literally shipping an entire week of features in half a day. I'm reviewing…

So prices will need to increase -- if it makes a senior engineer 10x more productive then coding assistants could easily cost 20x-100x more then what they cost today. Same for video generation.

Re: Hetzner Prices increase 30-40%

#33
post #20

Earlier quoted context omitted.

AI bubble won't last forever when a lot of compute is burned at a loss just so people can generate AI videos of sharks driving cars for social media shorts. It will burst at some point, at which HW manufacturing will have to lower prices if they still want to have enough sales to stay in business, since most of their current sales boom comes from HW they haven't even made yet. OpenAI can't keep losing investor money…

I really don't think so. I feel like we're at a takeoff. Senior engineers using AI coding are 10x more productive. My output has jumped dramatically. I'm a senior engineer and built six nines, active-active systems that moved billions of dollars a day. I am absolutely a beast with these models. I can replace an entire team just by myself. I'm literally shipping an entire week of features in half a day. I'm reviewing…

This is yet to be seen. Certainly feels like I'm more productive but I'm not seeing any faster results. It would be nice for this to be studied more.

Re: Hetzner Prices increase 30-40%

#35
post #18

Why are they increasing the prices on already existing infrastructure? Is that a way to "subsidize" the new purchases?

Power and cooling costs also play a role, probably. Even if you have an unbelievable PUE of 1.00, you are still affected by the energy cost increases. There's no running from that. Edit: I misremembered the PUE formula. This comment has been edited to correct my mistake.

A PUE of 1.00 means all of your electricity is used for compute and none for cooling (and other things). "as much electricity for cooling as you spend of compute" would be a PUE of 2. It's "total / compute". And PUE of 2 would be quite bad, most facilities are better than 2.

Re: Hetzner Prices increase 30-40%

#36
post #10

I assume this is a symptom of the wider ai hardware issue. This is starting to feel a bit like universal paperclips to me, and we are on the verge of the next stage of industrialisation multiplication. I guess its either quantum computing or the hypnodrones which will get us out of this mess one way or another...

Room temp superconductors for chips and robots!

Re: Hetzner Prices increase 30-40%

#37
post #7

Earlier quoted context omitted.

https://www.hetzner.com/pressroom/statement-price-adjustment... Text in full: > There have been drastic price increases in various areas in the IT branch recently. That is why, unfortunately, we must also increase the prices of our products. > The costs to operate our infrastructure and to buy new hardware have both increased dramatically. Therefore, our price changes will affect both existing products and new orders…

A hosting company referring to the core of their business as "the IT branch" doesn't instil confidence.

It's a German hosting company making a translation error from the German "IT-Branche". The wording doesn't appear in the German version, but very well could have at some point in the process.

Re: Hetzner Prices increase 30-40%

#38
post #20

Earlier quoted context omitted.

AI bubble won't last forever when a lot of compute is burned at a loss just so people can generate AI videos of sharks driving cars for social media shorts. It will burst at some point, at which HW manufacturing will have to lower prices if they still want to have enough sales to stay in business, since most of their current sales boom comes from HW they haven't even made yet. OpenAI can't keep losing investor money…

I really don't think so. I feel like we're at a takeoff. Senior engineers using AI coding are 10x more productive. My output has jumped dramatically. I'm a senior engineer and built six nines, active-active systems that moved billions of dollars a day. I am absolutely a beast with these models. I can replace an entire team just by myself. I'm literally shipping an entire week of features in half a day. I'm reviewing…

the dotcom bubble bursting didn't mean the internet wasn't an extremely valuable technology - still a bubble

Re: Hetzner Prices increase 30-40%

#39
post #7

Earlier quoted context omitted.

https://www.hetzner.com/pressroom/statement-price-adjustment... Text in full: > There have been drastic price increases in various areas in the IT branch recently. That is why, unfortunately, we must also increase the prices of our products. > The costs to operate our infrastructure and to buy new hardware have both increased dramatically. Therefore, our price changes will affect both existing products and new orders…

A hosting company referring to the core of their business as "the IT branch" doesn't instil confidence.

Thats just what we call it in Germany.. It's still a bit of backwater when it comes to some aspects of tech haha

Re: Hetzner Prices increase 30-40%

#40
post #20

Earlier quoted context omitted.

AI bubble won't last forever when a lot of compute is burned at a loss just so people can generate AI videos of sharks driving cars for social media shorts. It will burst at some point, at which HW manufacturing will have to lower prices if they still want to have enough sales to stay in business, since most of their current sales boom comes from HW they haven't even made yet. OpenAI can't keep losing investor money…

I really don't think so. I feel like we're at a takeoff. Senior engineers using AI coding are 10x more productive. My output has jumped dramatically. I'm a senior engineer and built six nines, active-active systems that moved billions of dollars a day. I am absolutely a beast with these models. I can replace an entire team just by myself. I'm literally shipping an entire week of features in half a day. I'm reviewing…

Video editors using video models can replace entire studio production departments. Writer-directors who know how to direct are essentially now Hollywood studios in their own right. I know a lot about this in particular because I've been making films as a hobby for 15+ years and work with a lot of industry professionals.

This is soul destroying. Literally made my day worse thinking about this.

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