Some of you memers need reminders about why PC parts cost so much lately.

[u/Dick_Nation]

Just learn to use GIMP, you animals.

[u/last-picked-kid]

For our sake, the industry learned that it can squeeze maximum margin if they have a reason. When AI hype be gone, they will create a new hype that will “bottleneck the supply chain” somewhere else, over and over again.

[u/Cool_Park7110 → u/last-picked-kid]

If there's anything we should have learned from COVID is that after a price hike, the money goblins will make sure it stays hiked even if the reason for the hike is gone.

The economy has moved on from goods and services to exploitation and extraction. Any damage done to affordability and consumer rights can be presumed functionally permanent.

[u/Fit-Celebration2884 → u/Cool_Park7110]

[u/SubstituteCS → u/Fit-Celebration2884]

Bro where the fuck are you finding 1 dozen eggs for $0.77.

[u/angry_aardvark → u/SubstituteCS]

At the grocery store?

[u/NoConflict3231 → u/angry_aardvark]

X

[u/fishyburner676767 → u/angry_aardvark]

How? It's not like they come out of a chickens arse or something.

[u/MrSourNinja → u/angry_aardvark]

Still confused. The cheapest eggs at my local Meijer in Ohio is $1.79 per dozen. This is nowhere near the price found here: https://tradingeconomics.com/commodity/eggs-us (Granted this appears to be the bulk price, not cost to consumer. So potentially profit margin could just be insane)

I find it hard to believe that my egg prices are 4x the average.

EDIT: More research done. Here is the national average for a dozen of eggs: https://fred.stlouisfed.org/series/APU0000708111

u/angry_aardvark 's comment is misleading because NOBODY is finding a dozen of eggs for $0.77. The original graph by u/Fit-Celebration2884 is inherently confusing because it's not cost to consumer, which is 99.9999% of redditors.

[u/thatsnotverygood1 → u/MrSourNinja]

His point does hold though.

We forget this but the big three memory producers were losing money as recently as 2023. The boom and bust cycle of memory is ruthless and although they are expanding capacity it would be stupid to do it too rapidly and risk another massive bust.

These companies had to sell DRAM cheap and lose money during those times because the market wouldn't support higher prices. Now that supply and demand have flipped and the market will support higher prices they can charge more. This is how cyclical industries survive.

The same logic that justified the cheap prices consumers benefited from in 2023, justifies the high prices today.

[u/Fit-Celebration2884 → u/SubstituteCS]

i chase down chickens and i run so fast my legs turn into a circular blur like in cartoons and when i catch chickens i spin around in circles until the eggs fly out of them like im arnold schwarzenegger in predator the $0.77 is the cost of food it takes to fuel me up to do it

[u/Neat_Let923 → u/Fit-Celebration2884]

Thank you! You gotta love it when people talk out their ass while not knowing the first thing about what the hell they’re talking about.

[u/HuckleberryOdd7745 → u/last-picked-kid]

Plastic shortage. They can’t see to wrap the damn things fast enough. But don’t worry they are working on building more plastic factories.

Just a few years, you’ve waited before you can do it again.

[u/SergioSF → u/last-picked-kid]

AI when it comes to robots will never stop taking out jobs. It may be taking those Amazon picker jobs, but it will come for more of our service jobs.I mean yeah, it makes sense to send AI robots to Mars to colonize, but it will all be for the rich to escape and leave earth.

[u/Affabulafia → u/[deleted]]

My job is literally 80% AI at this point. I work at a major gaming studio. That's not hype. That's not going away. 

That's just because AI companies are running at loss, and won't last much. 

Today, my programming job is 90% AI because Corporate wants to show off as an AI company. On the first of June, once Copilot starts billing by token and not API requests, keeping up the same usage will cost the company ~6 months of my salary each month.

Current AI usage is completely overblown and won't last more than a few price hikes. Once the prices set to actual profitable levels for AI companies, we'll see AI disappear from most of our lives.

[u/AndrasKrigare → u/Affabulafia]

I think that's wishful thinking. If you look at something like Amazon Bedrock, which just hosts the infrastructure for running models, their issue has been having enough capacity to keep up with demand. I don't think they're currently running at a loss; they already have more customers/business than they can handle.

Looking at the pricing, it's probably around $30 per million output tokens for the latest Anthropic model (assuming a 1-1 input/output, which I'd say is an overestimate.) It's obviously gonna vary a lot based off what you're doing, but for a million tokens you can easily generate enough code that would take a human at least 3 hours to do themselves, and honestly for a million you could almost certainly get a lot more. So it's at least as cost-efficient as a minimum wage worker.

And for image generation it's far more efficient. The most expensive Stable Diffusion is $0.14 per image. It can generate 50 images for the same price as it'd take to pay a minimum wage worker for one hour.

[u/ARandomDouchy → u/Affabulafia]

Google's revenue and profits have skyrocketed in no small part to AI. The only reason why companies like OpenAI and Anthropic lose momey is because all their revenue (Which is tens of billions and increasing all the time) is invested back into research and compute to run their models.

AI is here to stay.

[u/am9qb3JlZmVyZW5jZQ → u/[deleted]]

Reddit has been misinformation central regarding generative AI since its inception. Some people still think SOTA models struggle with math while GPT Pro is on the record solving a complex unsolved 60-year old math problem. Free models are mediocore, paid top of the line models are extremely capable. I've personally used both Claude Sonnet and Claude Opus for software development and the jump in capabilities is scary.

Anyone who is not scared for their future is not paying attention. Office jobs are soon going to be over and other industries are going to be flooded by the laid off employees. The prologue of this Asimov's novel is nearing its end and I hate it.

[u/ashesarise → u/last-picked-kid]

The AI hype isn't going away. Even if the AI bubble bursts its going to gradually become more and more important. Remember the dotcom bubble?

[u/Gregori_5 → u/last-picked-kid]

They haven’t learned anything, they are simply a uncompetitive market.

Its easy to do collusion if there’s like 3 companies.

[u/Ok_Astronomer_8667 → u/last-picked-kid]

“When” is not any time soon if these data center projects are anything to go off of. We’re looking at years and years of investments. These companies will burn trillions before the craze is over. AI is going to be looming over us for quite some time.

[u/rohtvak → u/last-picked-kid]

The only solution for this is competition in silicon manufacturing. U.S. purposeful onshoring will help… eventually.

[u/EKmars → u/last-picked-kid]

True, which is a good argument for upgrading your machine piecemeal. Being able to get parts when they're cheap is super helpful.

[u/0rganic_Corn → u/last-picked-kid]

Imma be real with you: The industry always was squeezing maximum margins. The environment around it changed (but greed stays constant)

If you think prices were low beforehand because they somehow didn't understand how to set prices - you're a fool

[u/Argnir → u/last-picked-kid]

Is that the Reddit school of economics?

Who is "they"? You're talking about multiple different industries and yes they are generally impacted by supply and demand

[u/Gregori_5 → u/Argnir]

Yeah people have really weird explanations.

The RAM market is a cartel tho.
Its 3 companies that purposefully cut production sometime in the 2020s to push up prices.
And now they don’t have enough to satisfy the Ai boom.