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Hetzner Prices increase 30-40%

docs.hetzner.com

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Re: Hetzner Prices increase 30-40%

#391

Running a small project on Hetzner from Germany. Got the email this morning. Honestly, even after the increase their dedicated boxes are still absurdly cheap compared to what you'd pay at AWS or GCP for equivalent specs. The real story here isn't Hetzner being greedy. It's that AI companies are vacuuming up every DRAM chip on the planet and the rest of us get to pay the tax. I priced out a RAM upgrade for my home ser…

Excuse me, but if the difference between 10 EUR per month and 14 eur per month is going to kill your startup, you probably shouldn't try to start it. Might be time to think about using and creating less memory-hungry software.

Actually I disagree. I've killed projects because I've run out of time for them and didn't like them costing me £50 a month. If I'd been able to keep them going at £10 a month, I might have kept them going until I could get back to them. Sometimes startups fail just because the owners get distracted by life, and the project just needs more time.

Re: Hetzner Prices increase 30-40%

#392
post #312

Earlier quoted context omitted.

Economic history is full of examples of demand shocks. This is not some unique situation that has never occurred before. This is actually a clean commodity price spike because it’s specifically not for market manipulation or financial engineering. It’s because demand for this product really did explode overnight.

> This is actually a clean commodity price spike because it’s specifically not for market manipulation or financial engineering. It’s because demand for this product really did explode overnight. Based on how the same 3 billion has been circiling between Anthropic, OpenAI, Nvidia, Google, Microsoft, Amazon, and a few other companies... I really doubt that this is the case, to be honest.

I think it's reasonable to distinguish which side drove this. RAM prices are going up but it's not engineered primarily by RAM manufacturers. They are naturally jumping on the bandwagon and responding, but they aren't the drivers. Of course, how they respond matters. They could make other choices. Over time we'll see how this goes because AI could cool and then RAM manufacturers end up in a spot where they choose to manipulate prices to keep them higher.

Re: Hetzner Prices increase 30-40%

#393

Running a small project on Hetzner from Germany. Got the email this morning. Honestly, even after the increase their dedicated boxes are still absurdly cheap compared to what you'd pay at AWS or GCP for equivalent specs. The real story here isn't Hetzner being greedy. It's that AI companies are vacuuming up every DRAM chip on the planet and the rest of us get to pay the tax. I priced out a RAM upgrade for my home ser…

> It's that AI companies are vacuuming up every DRAM chip on the planet and the rest of us get to pay the tax. DRAM is priced based on supply and demand, like every other market. When demand goes up, the price goes up for everyone. It’s not a “tax” on the rest of us in any sense. There’s just a lot of demand everywhere. > That's not normal market dynamics. This is actually a textbook example of markets functioning in…

> It’s not a “tax” on the rest of us in any sense. There’s just a lot of demand everywhere.

Curious on whether you will still hold your stance if OpenAI gets a taxpayer bailout. Even disregarding a bailout, they are already lobbying hard for tax credit expansion.

Re: Hetzner Prices increase 30-40%

#394

Running a small project on Hetzner from Germany. Got the email this morning. Honestly, even after the increase their dedicated boxes are still absurdly cheap compared to what you'd pay at AWS or GCP for equivalent specs. The real story here isn't Hetzner being greedy. It's that AI companies are vacuuming up every DRAM chip on the planet and the rest of us get to pay the tax. I priced out a RAM upgrade for my home ser…

Warning: another bot - check their history.

Re: Hetzner Prices increase 30-40%

#395

Earlier quoted context omitted.

They don't "have them", they're building them . https://www.micron.com/us-expansion/id > Micron has already achieved key construction milestones on its first Idaho fab with DRAM output scheduled to begin in 2027. https://investors.micron.com/news-releases/news-release-deta... > Production is expected to start in 2030 with the fabs ramping throughout the decade. Until they start outputting DRAM in any meaningful quant…

It looks like it's still a big difference between how the US and EU are responding to the chip supply wars. The US is actually building their own manufacturing capabilities domestically while the EU is apparently doing nothing, which is unfortunate.

Infineon is _opening_ its fab plant in Dresden this year which was supported by around 1bn euros from the EU equivalent of the CHIPS Act. They started building this fab in 2023, while TSMC, who started building its fab in the US right after covid just delayed the opening to 2027

Re: Hetzner Prices increase 30-40%

#396
post #264

Earlier quoted context omitted.

But aren't those the same startups that think they need to run on AWS EKS instead of using a single cheap server? The cheapest used Hetzner server currently is €39.24 / month: - Intel Core i7-6700 - 32 GB - 2 x 480 GB Datacenter SSD - 1 GB/s - 20 TB traffic Their VPS are even cheaper. And you can run a lot on this.

If your only need is a lot of bandwidth with very low server CPU use that’s fine. That CPU is ancient, though. Over a decade old. That DRAM is 2-channel DDR3. This could be a good deal for someone, but entrusting your startup’s operations to a 10 year old slow computer in Germany instead of using EKS would be an extremely short sighted move. A startup should be developing software and shipping it quickly to validate…

While I agree with the last sentence, I would suggest you buy what is needed not what is latest.

Re: Hetzner Prices increase 30-40%

#397

Earlier quoted context omitted.

"The real story here isn't Hetzner being greedy. It's that AI companies are vacuuming up every DRAM chip on the planet and the rest of us get to pay the tax." We might also have our aquifers depleted and our electricity prices skyrocket. But at least we see really great benefits, such as being able to script some side-project while unemployed due to AI.

Anyone who thinks modern data centers don’t use recirculated water can safely have their opinions summarily discarded.

Data centers consume...a lot...of water by design, recirculated water, does not means no water consumption. Water must be continuously added in evaporative cooling systems used by many data centers.

[1] - Cooling towers reject heat through evaporation, which uses water, not just recirculates it. Evaporated water is lost to the atmosphere and must be replaced with "make-up" water. As a result, recirculating cooling loops still require new water input to make up evaporation and blowdown losses.

[1] - https://en.wikipedia.org/wiki/Cooling_tower

Re: Hetzner Prices increase 30-40%

#399
post #389

Earlier quoted context omitted.

> imagine that these devices or services can no longer procure RAM, SSD or HDD Why would I imagine something so far out from what will realistically happen? Again, a lot of doom and gloom over very unrealistic scenarios. Where are you even getting this from, YouTube channels? Of course if there is no RAM or flash-storage at all available, eventually hardware will be unfeasible. But when we've experienced these sort o…

Valve had to delay a bunch of new products already. They also had to effectively discontinue the non-OLED Steam Deck due to the increased prices. https://www.theverge.com/games/874196/valve-steam-machine-fr...

Yeah, which shows that Valve don't think "these devices or services can no longer procure RAM, SSD or HDD" is actually what'll happen in reality, because then they'd have to cancel the hardware fully. Instead, they're delaying it.
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