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As AI gobbles up chips, prices for devices may rise

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Re: As AI gobbles up chips, prices for devices may rise

#361
post #290
post #284

Earlier quoted context omitted.

> AI won’t replace knowledge workers, it will just give them different jobs. Yeah, and those new jobs will be called "long term structural unemployment", like what happened during deindustrialization to Detroit, the US Rust Belt, Scotland, Walloonia, etc. People like to claim society remodels at will with almost no negative long term consequences but it's actually more like a wrecking ball that destroys houses while…

I’m not saying society will remodel, I’m saying the typical white collar job is already mostly unnecessary busywork anyway, so automating part of that doesn’t really affect the reasons that job exists.

Except people now have an excuse to replace those workers, whereas before management didn't know any better (or worse were not willing to risk their necks).

The funny/scary part is that people are going to try really hard to replace certain jobs with AI because they believe in the hype and not because AI may actually be good at it. The law industry (in the US anyways) spends a massive amount of time combing through case law - this is something AI could be good at (if it's done right and doesn't try and hallucinate responses and cites sources). I'd not want to be a paralegal.

But also, funny things can happen when productivity is enhanced. I'm reminded of a story I was told by an accounting prof. In university, they forced students in our tech program to take a handful of business courses. We of course hated it being techies, but one prof was quite fascinating. He was trying to point out how amazing Microsoft Excel was - and wasn't doing a very good job of it to uncaring technology students. The man was about 60 and was obviously old enough to remember life before computer spreadsheets. The only thing I remember from the whole course is him explaining that when companies had to do their accounting on large paper spreadsheets, teams of accountants would spend weeks imputing and calculating all the business numbers. If a single (even minor) mistake was made, you'd have to throw it all out and start again. Obviously with excel, if you make a mistake you just correct it and excel automatically recalculates everything instantly. Also, year after year you can reuse the same templates and just have to re-enter the data. Accounting departments shrank for awhile, according to him.

BUT they've since grown as new complex accounting laws have come into place and the higher productivity allowed for more complex finance. The idea that new tech causes massive unemployment (especially over the longer term) is a tale that goes back to luddite riots, but society was first kicked off the farm, then manufacturing, and now...

Re: As AI gobbles up chips, prices for devices may rise

#362

I cannot stop thinking about the LLMs having this Midas touch quality, because everything they touch seems to ruin things or make people want to avoid them, for example: - Ghibli studio style graphics, - the infamous em-dashes and bullet points - customer service (just try to use Klarnas "support" these days...) - Oracle share price ;) - imagine being one of the worlds most solid and unassailable tech companies, losi…

I'm not sure people remember when PCs and inkjet printers became affordable while MS Word added cliparts at around the same time. Those black figurines with a light bulb above them while some text was written above or below in either Comic Sans or 3D "word art" were absolutely everywhere. Digital typesetting was bad when it started (see Donald Knuth's rant about it, leading to TeX), but you have to imagine the horror of normal people trying to layout stuff in Word all of the sudden without a hint of competence. This is exactly what happens right now with LLMs, some people will find the right amount of usage, the others won't, but that's OK. The problem back the wasn't MS Word per se (bar some stupid defaults Microsoft had borked completely), neither are LLMs inherently the problem right now. We are in the seemingly never-ending hype cycle, but even that will pass.

Re: As AI gobbles up chips, prices for devices may rise

#363
post #84

Earlier quoted context omitted.

I think it will be a good thing actually. Engineers, no longer having the luxury of assuming that users have high end system specs, will be forced to actually write fast and efficient software. No more bloated programs eating up RAM for no reason.

At the same time, AI has made it easier than ever to produce inefficient code, so I expect to rather see an explosion of less efficient software.

It has also made it easier than ever to build native applications that use the os provided toolkits and avoid adding a complete web-tech stack to everything.

Re: As AI gobbles up chips, prices for devices may rise

#364
post #294

Earlier quoted context omitted.

This take is pure Luddite nonsense. AI "lowering labor value while boosting capital" ignores centuries of automation: productivity gains cut costs, expand markets, create new jobs, and raise real wages despite short-term disruption. Steam engines, electricity, computers displaced workers but spawned far more opportunities through new industries and cheaper goods. Same pattern now. The "jobless masses stuck with 1GB p…

> Compute keeps getting vastly cheaper and more capable; AI speeds that up. ???

https://deepmind.google/blog/how-alphachip-transformed-compu...

Among others.

Re: As AI gobbles up chips, prices for devices may rise

#365
post #135

It feels like a weird tension: we worry about AI alignment but also want everyone to have unrestricted local AI hardware. Local compute means no guardrails, fine-tune for whatever you want. Maybe the market pricing people out is accidentally doing what regulation couldn't? Concentrating AI where there's at least some oversight and accountability. Not sure if that's good or bad to be honest.

The people who worry about “alignment” are very much not the same people who want anyone to have local AI hardware. They are the people who would force every computer legally allowed to be sold to the hoi polloi to be as locked down as an iPhone if they could.

Re: As AI gobbles up chips, prices for devices may rise

#366

Earlier quoted context omitted.

It going to be misleading to look at the fraction and I think it's misleading to only look at PE investors. It's more important to look at the fraction of demand for homes that are on the market. Investors bought 1/3 of the US homes sold in 2023. This is, I think, quite alarming, especially since a small amount of extra demand can have a large effect on prices.

That 1/3rd is almost all small time flippers who renovate properties before resale.

this would need some source citation. There are plenty of investors on the market holding rental properties.

Re: As AI gobbles up chips, prices for devices may rise

#367

It's somewhat alarming to see that companies (owned by a very small slice of society) producing these AI thingies (whose current economic is questionable value and actual future potential is up to hot debate), can easily price the rest of humanity out of computing goods.

> It's somewhat alarming to see that companies (owned by a very small slice of society) ... can easily price the rest of humanity out of computing goods. If AI lives up to the hype, it's a portent of how things will feel to the common man. Not only will unemployment be a problem, but prices of any resources desired by the AI companies or their founders will rise to unaffordability.

[deleted]

Re: As AI gobbles up chips, prices for devices may rise

#368

The free market will surely fix this, amirite? Maybe this is the free market working as intended -- did you know that RAM is actually a luxury item, like a Rolls Royce, and most plebes should just make do with 4gb machines, because that is the optimum solution!

Make all RAM the same density, lease out extra RAM through software. Rent all the things. Blackrock demands it.

Re: As AI gobbles up chips, prices for devices may rise

#369

Earlier quoted context omitted.

They decreased 2025 production, to increase memory prices, profits and their stock prices, https://news.ycombinator.com/item?id=46419776

Afaik production of nand was reduced as some of the lines can be repurposed for dram that's more in demand. Significantly increasing supply is also a huge multi year investment into a new fab that'd likely not pay out when the artificial demand breaks down.

> Significantly increasing supply is also a huge multi year investment into a new fab

so, are there huge multi-year investments?

Re: As AI gobbles up chips, prices for devices may rise

#370

Software has gotten bad over the last decade. Electron apps were the start but these days everything seems to be so bloated, right from the operating systems to browsers. There was a time when apple was hesitant to add more ram to its iPhones and app developers would have to work hard to make apps efficient. Last few years have shown Apple going from 6gb to 12gb so easily for their 'AI' while I consistently see the q…

Fair. I installed a MIDI composition app recently that was 1.2 GB! Now, it does have some internal synthesis that like uses samples, but only a limited selection of sounds so I think 95% of the bulk is from Electron.

I used to to compose midi on Cubase on my Atari st with 512kB of ram. Probably had far more features and ran snappier to boot!
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