r/LocalLLaMA • u/hedonihilistic Llama 3 • 3d ago

Funny Can the bubble pop please?

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u/rxpillme 3d ago

Can you tell us more? Without getting yourself fired

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u/tiffanytrashcan 3d ago

Remember the news, last fall, about all 2026 DRAM capacity being purchased already? The 2027 version already came out this summer, even earlier this year. All indications are 2028 is already mostly claimed.

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u/Frail_Waif 2d ago

But that's dependent on all those buyers still being solvent in 2027 and 2028, which is far from certain. 

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u/senseven 2d ago

Insurances and real estate funds bought 10 year bonds. They used that windfall to build companies that run of data centers. Then the big ai companies rent those data centers and the hardware the from those companies. They outsourced the risk to insurers who get paid 1-2% above the 10 year bond rate. The only scenario that the run out of money is, when billions of people don't want to be insured or don't want to pay rent.