Need I say anything about what industry is buying all of it? Also, it's most likely sold out for the next five years. You should forget about buying a DDR5 rig and learn to be happy with a DDR4 setup, which apparently memory is pretty cheap for.
That industry cannot fail or contract too soon!
But that is, in and of itself, not really going to provide any relief. Let's say an AI provider fails, and for discussion's sake, all of one data center is owned by that company. So the contents of that data center go up for sale, and you're able to buy an AI server for a screaming deal, loaded with huge amounts of memory and storage.
And most likely the memory and storage isn't compatible with your current equipment. AI servers are much like crypto mining rigs. They're highly optimized for doing very specific calculations and transformations, and won't be plug-compatible with existing equipment. Really serious hobbyists will probably be able to get them to do something useful, and I'm sure someone will port Doom to them, but they won't be useful to a casual user aside from being a dust-collecting museum piece.
I saw a video of a guy who managed to buy a high-speed video card designed for crypto. It was a previous generation card that had been superseded and was too slow for then current needs. He was really looking forward to seeing how fast it would perform on video benchmarks. There was only one problem:
IT DIDN'T HAVE A GRAPHICS OUTPUT PORT! All it did was crunch numbers really fast, it didn't output video! THIS is the sort of kit these AI servers are going to be stuffed with.
None of the memory makers will build additional plants because of the risk of the bubble bursting while they're mid-construction. If they break ground with funds committed, all another supplier has to do is lower their price a little bit to destroy them. And the lithography machines required to make memory wafers are insanely expensive! I would expect the people who make those require payment fully in advance. And some AI companies aren't able to buy as much memory and SSDs as they want: they were late to the game and the more established companies already were existing customers and had priority with contracts. These kids that are new to the show won't be able to grow as fast as they'd like, to which I say GOOD.
Another interesting thing to note is that the automobile sector is being very hard hit as cars are so increasingly computerized. I would expect the aircraft manufacturers will feel the same hit. Makes me desirous to make my 2015 Subaru last as long as possible: 186,000 miles on it right now.
GOVERNMENTS are also being hard hit as they need increasing amounts of computers, this is making their costs go up. I can't imagine they're very happy as they have to deal with tight budgets.
While there are definitely good things being done with neural networks and LLMs, AI slop is the thing that's really powering this ridiculousness.
https://www.tweaktown.com/news/113004/memory-capacity-for-all-of-2027-has-reportedly-been-booked-and-sold-with-no-more-dram-or-hbm-available/index.htmlhttps://hardware.slashdot.org/story/26/08/09/0547220/ramageddon-2027-memory-capacity-reportedly-sold-outBut here's the interesting news: from a WaPo article, Microsoft, Google, Amazon, Meta and Oracle Expect a Negative Cash Flow of $125 Billion Next Year!
OUCH! They're throwing so much money into AI that they're all diving deep into negative cash flow? I'm so glad that I have no direct investment in any of them.
From the WaPo article:
"Free cash flow, which measures the cash left over after paying expenses and AI infrastructure costs, is now expected to shrink to almost nothing for the five companies combined in 2026, and decline again to negative $125 billion the following year... AI spending by Amazon and Google pushed the companies to an ignominious milestone: They lost more cash in the past three months than any other large U.S. companies, according to S&P Global data. Investment analysts expect Elon Musk's SpaceX to show even worse cash bleeding this week."SpaceX is down bigly since its IPO, but they did raise a lot of cash to continue its operations. Tesla is also down bigly after its earnings report last week. Breaks my little heart.
Did you know that 'boat' is an acronym? Stands for Bust Out Another Thousand. Though I'd always heard the definition of boat was 'a hole in the water into which you throw money'. Looks like we've found another application for the term.
NO AI COMPANY HAS YET TO PRODUCE A PROFIT. THEY ARE ALL LOSING MONEY, AND BIG INVESTORS ARE STILL POURING CASH INTO THEM IN HOPES THAT THEY'RE FUNDING THE ONE THAT WILL MAKE IT BIG. They are generating revenue, but no where near where their expenses are.
https://www.washingtonpost.com/technology/2026/08/03/one-chart-shows-incredible-reversal-american-tech-companies/https://developers.slashdot.org/story/26/08/08/1727226/microsoft-google-amazon-meta-and-oracle-expect-a-negative-cash-flow-of-125-billion-next-year