[HN Gopher] Hard drives on backorder for two years as AI data ce...
       ___________________________________________________________________
        
       Hard drives on backorder for two years as AI data centers trigger
       HDD shortage
        
       Author : pabs3
       Score  : 132 points
       Date   : 2025-11-12 05:36 UTC (17 hours ago)
        
 (HTM) web link (www.tomshardware.com)
 (TXT) w3m dump (www.tomshardware.com)
        
       | mock-possum wrote:
       | > delivery times for enterprise-grade HDDs delayed by two years.
       | 
       | I sleep
       | 
       | > so hyperscalers are now switching to QLC NAND-based SSDs to
       | avoid these backorders ... This could lead to SSD prices rising
       | worldwide
       | 
       | Real shit
        
         | BoredPositron wrote:
         | The funniest thing about this is that, with high GPU prices,
         | rising RAM costs, and now increasing SSD prices, Apple will end
         | up producing the most affordable PCs.
        
           | ipsum2 wrote:
           | Apple uses the same RAM, SSD, etc as everyone else does. They
           | don't have a magic supply chain that is unaffected by the
           | broader world.
        
             | BoredPositron wrote:
             | They don't use the same SSDs? They don't use the same RAM?
             | They have their own supply chain in place? Whatcha talking
             | about bud?
        
               | Incipient wrote:
               | They use the same suppliers. The problem is the base
               | chip, and also the wafer itself, all of which will impact
               | apple.
               | 
               | (apple doesn't use hdds so not talking about that here).
        
               | BoredPositron wrote:
               | The problem is not chip supply it's manufacturing. Apple
               | has their own manufacturing suppply. This is not the chip
               | crisis of the last years. Hyper scalers are switching to
               | consumer hardware because there is nothing in storage for
               | Prosumer anymore and the manufacturing pipelines for
               | these are smaller and harder to scale than consumer ones.
        
               | appointment wrote:
               | Appple uses custom DRAM and NAND chips?
        
               | jeroenhd wrote:
               | The NAND itself seems to come from companies like SK
               | Hynix, which are currently struggling to meet demand.
               | 
               | Apple doesn't make their own NAND, just like they don't
               | make their own screens. They did write their own NAND
               | controller and stuck it into their CPUs, but the flash
               | memory that actually stores data doesn't come directly
               | from their factories.
        
               | BoredPositron wrote:
               | It's not a fucking nand problem. The producers reduced
               | capacity because of the slow consumer PC market in 2024.
               | With hyperscalers shifting to consumer products the
               | market is strained but everyone is scaling up their
               | production now. This is not the same as the chip shortage
               | we had in the last few years. The production capabilities
               | are there they are just adjusting to new market
               | realities. We will see a whiplash for a few months but we
               | can and will produce enough chips for everyone which we
               | were not able to do in the 20-22 crisis. Stop getting
               | your "insights" from influencers and stop parroting them.
        
               | Incipient wrote:
               | It's ABSOLUTELY a chip shortage. TSMC is booked out years
               | in advance and jacking prices _because they can_.
               | 
               | On the dram side, because that's what I saw recently, sk
               | hynix is down to TWO WEEKS of inventory:
               | https://wccftech.com/sk-hynix-ddr5-inventory-down-to-
               | just-2-...
               | 
               | I'd be curious what evidence there is to support its
               | purely an end-product manufacturing shortage?
        
               | BoredPositron wrote:
               | I don't see any evidence of a general chip shortage in
               | your link either. That they are down in stock because of
               | unprecedented demand after a downturn in the last 3 years
               | in consumer demands of consumer products is something
               | completely different than being down because of
               | production capacity. They reduced production in 2023 and
               | 2024. It's exactly what I wrote in my previous comment.
        
               | microtherion wrote:
               | Yes, but Apple tends to lock in their supply with long
               | term contracts and prepayments, so they often are
               | protected from supply shocks.
        
             | siva7 wrote:
             | They have a magic supply chain that is unaffected by the
             | broader world which is one of the reasons why Tim Apple was
             | chosen by Steve Jobs as his successor.
        
           | jrvarela56 wrote:
           | If every other PC is more expensive, they will just increase
           | prices.
        
           | HackerNewt-doms wrote:
           | No, Apple has effectively promoted iCloud as the alternative
           | to local storage as part of its product differentiation
           | strategy in the lower price segment.
           | 
           | Apple will almost certainly introduce the same approach for
           | the budget MacBook as well.
        
       | margalabargala wrote:
       | This is a long term good thing.
       | 
       | It sucks right now and will probably suck through 2027.
       | 
       | By 2028 or so we'll have a 50% drop in price-per-storage for
       | these components.
        
         | andy_ppp wrote:
         | Will the AI bubble last until 2028? I'm still unclear how AI
         | will return even 10% of this investment in profit.
        
           | citrin_ru wrote:
           | Depending on the future you predict 10% may be a good ROI -
           | if AI will replace humans and traditional economy will
           | collapse all other investments will loos value even more. In
           | such scenario you cannot save the money you only can loose
           | less if you will make a right investment.
        
             | adrianN wrote:
             | I'm not sure I understand why the economy would collapse if
             | AI replaced humans. Wouldn't the companies just make more
             | profit because they save labor costs and stonks go up?
        
               | netdevphoenix wrote:
               | The economy is a macrosystem. For a company to make
               | profit, someone needs to buy. For someone to buy a
               | service or a product, they need to have the money needed
               | to buy. If AI replaces humans and UBI doesn't happen,
               | costs might drop to near zero but so will revenue as
               | virtually no one will be able to buy anything. So the
               | economy will certainly collapse.
        
               | adrianN wrote:
               | It depends on how many jobs AI replaces and which. It is
               | unlikely that LLMs will replaces plumbers any time soon
               | for example. Many technological inventions have replaced
               | humans in lots of jobs, the economy has only grown since
               | then.
        
               | netdevphoenix wrote:
               | >Many technological inventions have replaced humans in
               | lots of jobs, the economy has only grown since then.
               | 
               | Indeed it has, but many of those it replaced did not
               | necessarily get moved to better positions if they were
               | moved at all. The industrial revolution was great if you
               | were young and had little to no responsibilities. Your
               | average middle aged farmer with a large family to feed
               | faced poverty or near poverty and those who were able to
               | move to the cities faced worse labour conditions. People
               | on here love talking about the winners while conveniently
               | ignoring the loser side.
               | 
               | And that's not even mentioning the skilling up issue to
               | which older workers are more vulnerable. Who will fund
               | the nation wide skill up costs for them?
        
               | rwyinuse wrote:
               | Industrial revolution was all right as long as you owned
               | the farm, as most farmers did. The losers were those farm
               | workers who weren't needed in as great numbers anymore,
               | and they weren't paid well in the first place. I agree on
               | labour conditions though, there industrialisation was a
               | clear downgrade for many.
               | 
               | What worries me about AI is how it's not obvious which
               | new jobs it may create. Younger farm workers and children
               | of farmers could just move and work in factories, where
               | the employers mostly took care of their training. I can't
               | see such opportunities here. I believe whole world needs
               | either UBI, or governments paying for jobs that
               | previously weren't seen worth paying for. Otherwise the
               | economy will collapse due to mass unemployment and
               | resulting lack of demand.
        
             | andy_ppp wrote:
             | No I'm predicting a 90%+ loss.
        
         | chrismorgan wrote:
         | > _By 2028 or so we 'll have a 50% drop in price-per-storage
         | for these components._
         | 
         | Do you mean relative to six months ago, or now? Because a lot
         | of the prices have already more than doubled.
         | 
         | (I'm upset because the computer I've been planning to build,
         | which three months ago would have come to around [?]90,000, is
         | now up to [?]1,20,000 and climbing week by week, half due to
         | price increases on the same part, half due to forced
         | substitutions on RAM since the cheaper 32GB 6400MT/s DDR5
         | sticks are completely unavailable. And looking into laptops,
         | for the first time _ever_ I'm seeing manufacturet SODIMM or SSD
         | upgrades being cheaper than aftermarket.)
        
           | walterbell wrote:
           | _> manufacturer SODIMM or SSD upgrades being cheaper than
           | aftermarket._
           | 
           | Temporarily thanks to old stock.
        
         | palmotea wrote:
         | > This is a long term good thing. ... By 2028 or so we'll have
         | a 50% drop in price-per-storage for these components.
         | 
         | Per the op:
         | 
         | > and the ongoing DRAM shortage is proof of this, with memory
         | kits costing more than double what they did just a few months
         | ago.
         | 
         | > While enterprise-grade QLC SSDs would entirely power this
         | pivot, Sandisk has already raised NAND prices by 50%, according
         | to another DigiTimes report, after initially warning of a 10%
         | increase two months ago.
         | 
         | So you're basically saying prices may return to normal in two
         | years, and that's somehow a good thing compared to them not
         | being inflated in the first place?
        
       | karlkloss wrote:
       | And when the AI bubble bursts, "refurbished" HDDs and GPUs will
       | flood the market. Save your money now and be prepared.
        
         | esseph wrote:
         | If this bubble pops you might need that money for food when
         | bananas go from $1.50 to $150.00
        
         | Nux wrote:
         | GPUs yes, but there'll be no HDDs making it alive, they'll get
         | destroyed to protect whatever rubbish they had on.
        
           | HugoTea wrote:
           | Depends how it goes down, if a company goes into insolvency
           | all security policies are off the table and random hardware
           | can get shifted into lot bidding.
        
           | pmontra wrote:
           | HDD can be written multiple times with random data if data
           | centers really have to protect what their former customers
           | wrote on them. I never looked at those details in standard
           | contracts.
           | 
           | There is also encryption at rest.
        
             | teeray wrote:
             | > HDD can be written multiple times with random data
             | 
             | Which costs more in compute than simply throwing the drive
             | in a shredder
        
               | walterbell wrote:
               | What's the disposal method for shredded drives?
        
               | faeyanpiraat wrote:
               | Mount Doom
        
               | rwyinuse wrote:
               | Not really, if we give the HDD some resale value. There's
               | a market for used but functional hard drives.
        
             | tencentshill wrote:
             | They have enough investor money they don't need to recoup
             | it selling used drives. Straight to the shredder.
        
             | jimwalsh wrote:
             | All the large datacenter/cloud companies do not let hard
             | drives leave the building.
        
             | SoftTalker wrote:
             | All you really need to do is write one pass of zeros on
             | them. That will prevent anyone but a very dedicated
             | adversary with expensive equipment from recovering any
             | data, especially on TB scale drives.
             | 
             | Can still take hours per drive though, which is why a lot
             | of people skip it.
        
               | edoceo wrote:
               | I make a random 1MB chunk, then write that all over the
               | drive, at overlapping offsets. I've been told that really
               | clears it. On IDE-spinning-rust disks I trusted it, not
               | sure if I should trust these modern SSD
        
               | p1mrx wrote:
               | Why rewrite the same 1MB chunk, instead of making new
               | random chunks?
               | 
               | Redundant data at least opens the possibility that the
               | drive could deduplicate.
        
               | krior wrote:
               | Or encrypt it and just trash the encryption header.
        
           | archagon wrote:
           | I believe many enterprise drives have instant-erase
           | functionality (presumably deleting an encryption key).
        
             | SoftTalker wrote:
             | If they were encrypted to begin with, yes. Many are not.
        
               | archagon wrote:
               | I was under the impression that these drives may be
               | transparently encrypted by default. (Rollable encryption
               | key in hardware, invisible to end-user.)
        
           | bigbuppo wrote:
           | Nah, the liquidators aren't going to care about that. Those
           | hard drives are going to be shipped out with all your wildest
           | porn chat bot fantasies.
        
             | maerF0x0 wrote:
             | "Shredded onsite" means by the next user when they format
             | the drive and write contents to it /s
        
         | microtherion wrote:
         | My understanding is that refurbished GPUs from e.g. crypto
         | mining are something people are warned away from, because
         | they've often been run into the ground. Are AI usage practices
         | different?
        
           | trenchpilgrim wrote:
           | > My understanding is that refurbished GPUs from e.g. crypto
           | mining are something people are warned away from, because
           | they've often been run into the ground.
           | 
           | No, this wasn't the case. While there were never
           | comprehensive studies various tech media purchased these
           | cards to run testing and found that, other than scammers,
           | they all performed to expectation.
        
             | lm28469 wrote:
             | You can buy used car tires with 1% of thread left and
             | they'll perform amazingly during your one time test too
        
               | rwyinuse wrote:
               | Car tire is a moving part that wears in use. Only moving
               | parts a GPU has are its fans, which can be replaced. The
               | rest may last really long, or fail brand new.
        
               | SoftTalker wrote:
               | Thermal cycling will eventually cause problems with
               | continuity but I'm not sure that's really predictable. We
               | have some really old GPUs that eventually had problems
               | under load, we attributed it to thermal degradation as we
               | had ruled out pretty much everything else.
        
               | lm28469 wrote:
               | Believe it or not but the "really long time" you're
               | mentioning is much less "long" when you run the card 24/7
               | at 100% in enclosed spaces
               | 
               | Electricity is a moving part btw, electronic components
               | do wear and tear
        
         | mschuster91 wrote:
         | > And when the AI bubble bursts, "refurbished" HDDs and GPUs
         | will flood the market.
         | 
         | GPUs? No way. The datacenter cards don't even have video output
         | ports, and I think the chips destined for AI / ML training also
         | have everything video/render related removed from the silicon,
         | makes for more yield.
         | 
         | And the other way around, using (cheap) consumer GPUs in
         | servers, I think at least NVDA tries to prevent that with
         | driver-based DRM, so there won't be any flooding coming from
         | there either.
        
       | krackers wrote:
       | >Picking QLC over TLC allows them to maintain costs while
       | achieving sufficient endurance for cold storage.
       | 
       | How does that work, doesn't QLC have less write endurance?
        
         | ycombinete wrote:
         | Yes, but QLC has much higher density.
         | 
         | I think it's the higher density that makes it better for cold
         | storage, which generally has infrequent access, and more reads
         | than writes.
         | 
         | Hence the QLC's endurance being " _sufficient_ for cold storage
         | ".
        
         | esseph wrote:
         | Cold storage normally doesn't have frequent writes or frequent
         | reads.
        
         | Havoc wrote:
         | Ssd for cold storage seems like an odd choice in itself. If
         | that's genuinely done due to availability then we really are in
         | for a wild ride
        
           | bayindirh wrote:
           | I believe "cold storage" in this parlance is more like "read-
           | oriented" rather than being accessed once in three years.
        
         | bayindirh wrote:
         | In short: Aggressive overprovisioning.
         | 
         | Enterprise SSDs are not expensive only because they have better
         | flash chips, but they have much more of them.
         | 
         | A top of the line write oriented SSD comes with 4-7x more
         | capacity than what it says on the tin, but that extra capacity
         | is used for cell replacement rather than capacity itself.
         | 
         | Mixed use comes with 2-4x overprovisioning, and read oriented
         | is around 2x IIRC.
        
           | aaronax wrote:
           | I find these numbers to be way outside of what I have heard
           | of. I would be surprised if you could give an example that
           | comes with even 1.5x capacity. (4TB capacity, 6TB actual
           | flash on chips, for example.)
        
       | mrandish wrote:
       | I _really_ hope the AI bubble bursts sooner rather than later.
       | Sooner will impact the broad economy less severely (although it
       | 'll still be pretty bad) and curtail these supply chain
       | shortages. If the bubble keeps inflating, the storage makers will
       | have already mostly built out excess capacity and the crash will
       | lead to even longer-term supply distortion.
        
       | walterbell wrote:
       | "OMEC" (Organization of Memory Exporting Countries) NAND
       | production quotas?
       | 
       | https://x.com/jukanlosreve/status/1988505115339436423
       | Samsung Electronics has lowered its target for NAND wafer output
       | this year to around 4.72 million sheets, about 7% down from the
       | previous year's 5.07 million. Kioxia also adjusted its output
       | from 4.80 million last year to 4.69 million this year.. SK hynix
       | and Micron are likewise keeping output conservatively constrained
       | in a bid to benefit from higher prices. SK hynix's NAND output
       | fell about 10%, from 2.01 million sheets last year to around 1.80
       | million this year. Micron's situation is similar: it is
       | maintaining production at Fab 7 in Singapore--its largest NAND
       | production base--in the low 300,000-sheet range, keeping a
       | conservative supply posture.
       | 
       | Micron has a new US fab coming online in 2027, which should
       | improve supply.
       | 
       | DRAM price fixing scandal: 1998-2002, 2016-2018,
       | https://en.wikipedia.org/wiki/DRAM_price_fixing_scandal
        
         | acd10j wrote:
         | It's a cartel just like the OPEC oil cartel.
        
           | Eddy_Viscosity2 wrote:
           | Is there anything that isn't functionally a cartel at this
           | point?
        
             | Pet_Ant wrote:
             | Yes, anywhere there is a race to the bottom. That is why
             | you see cartels rise up, like unions are cartels. Things
             | that are not cartels generally have ever diminishing
             | margins.
        
               | Eddy_Viscosity2 wrote:
               | I see the rising of cartels more just the inevitable
               | consequence of market systems where some players just
               | getting bigger and bigger. Then when only a few large
               | players are left, they collude (either openly, or just by
               | unspoken agreement). So less of a race to the bottom, but
               | a race to the top.
        
               | Pet_Ant wrote:
               | I think we agree. To risk being trampled by a race to the
               | bottom, they choose to rise above by forming a cartel.
        
       | mchannon wrote:
       | During 1998-2000, AOL was ordering so many free trial CDs that it
       | locked up world production, and music CDs faced 8-12 week delays.
       | It was rumored that certain weeks there were no albums getting
       | fabricated at all, worldwide.
       | 
       | I wonder if history isn't repeating itself. AOL CDs had pretty
       | much jumped the shark by 2000.
        
         | PeaceTed wrote:
         | All that manufacturing demand led to enough free machinery to
         | get those free Ubunutu CD's! ;)
        
       | rsync wrote:
       | It's rough out there and has become increasingly difficult to
       | maintain our pace of storage deployment.
       | 
       | Further - and most concerning - is the pollution of the supply
       | chain with refurbished/recertified stock being sold and marketed
       | as "new".
       | 
       | One example:
       | 
       | https://kozubik.com/items/MaestroTechnology/
       | 
       | I strongly advise buyers to stick with trusted suppliers, avoid
       | Amazon/ebay channels, and _carefully_ vet your incoming stock
       | with SMART tools to ensure you receive what you think you are ...
       | especially for SSD parts.
        
         | kkylin wrote:
         | Question for all of you more knowledgeble than I: can SMART
         | data be tampered with? When I get, say, a refurbished Mac from
         | Apple, I'm trusting Apple won't stoop to that. But a SSD vendor
         | I've never heard of?
        
           | fny wrote:
           | Yes, it can be tampered with. Drives can even lie about the
           | amount of storage they support. I once bought a 1TB pen drive
           | that was only 32MB for $10. (Yes, I knew it was a scam
           | beforehand.)
        
           | rsync wrote:
           | Yes. There are vendor-specific utilities that have escaped
           | into the wild that allow bad actors to reset various SMART
           | counters, etc.
           | 
           | A lot of abuse came to light during the launch and initial
           | mining of the (ridiculous) Chiacoin[1] during which Chia
           | miners would burn through SSDs to within a hair of their
           | usable life, reset their SMART stats, and sell them as new on
           | Amazon or ebay.
           | 
           | As can be seen in my above comment, larger distributors like
           | "Maestro Technologies" have their stock polluted with parts
           | like this and I find it _very unlikely_ that they are not
           | aware of the status of these parts they are selling as new.
           | 
           | [1] https://en.wikipedia.org/wiki/Chia_Network
        
         | estimator7292 wrote:
         | DO NOT assume SMART is reliable. You can wipe SMART stats or
         | write any values you want.
         | 
         | You have to actually examine the real bits on the drive.
         | Resellers don't want to take the time to actually zero a drive,
         | they usually just nuke the partition table.
         | 
         | You also need to physically examine the drive. Corroded
         | fingerprints on the PCB, wear on the port contacts, scratches
         | from mounting rails, etc.
         | 
         | That's how it found out that the last "new" drive I bought on
         | Amazon was actually a used Backblaze drive. It contained
         | terabytes of customer data, and a shit ton of cleartext files.
         | SMART, of course, reported it was a brand new drive with zero
         | hours. Cleartext logs on the drive showed many thousands of
         | hours of runtime.
         | 
         | Physical examination is the only reliable method.
        
           | neilv wrote:
           | > _That 's how it found out that the last "new" drive I
           | bought on Amazon was actually a used Backblaze drive. It
           | contained terabytes of customer data, and a shit ton of
           | cleartext files. SMART, of course, reported it was a brand
           | new drive with zero hours. Cleartext logs on the drive showed
           | many thousands of hours of runtime._
           | 
           | This sounds like it could be a big problem for Backblaze
           | customers, and consequently for Backblaze.
           | 
           | Can you alert the Backblaze CEO about their insufficiently-
           | decommissioned drives leaking out like this?
           | 
           | Backblaze customers also need to know, but I would give
           | Backblaze the first shot at figuring out how to notify, whom,
           | of what.
        
           | SoftTalker wrote:
           | > drive I bought on Amazon was actually a used Backblaze
           | drive
           | 
           | Assuming this is true, I find it weird/surprising that
           | Backblaze doesn't at least zero their drives before disposing
           | of them? I have to do that at my work, and at least by policy
           | I could lose my job if I skipped doing it.
        
             | loloquwowndueo wrote:
             | But you don't work at backblaze :)
        
         | catigula wrote:
         | Nearly any product you can buy from Amazon, even when it says
         | shipped from Amazon, is suspect.
         | 
         | I wouldn't shop there at all. It's a literal scam market.
         | Allegedly.
        
       | evanjrowley wrote:
       | The future of AI is everything we liked getting ruined by AI.
        
       | criemen wrote:
       | So far, due to the AI boom, we're lacking:
       | 
       | * HDDs
       | 
       | * SSDs
       | 
       | * DRAM
       | 
       | * GPUs, obviously
       | 
       | * Power to hook up to our datacenters
       | 
       | Anything I'm missing? What a crazy world we're living in.
        
         | magicmicah85 wrote:
         | Water? Clean Air? ROI?
        
           | captainkrtek wrote:
           | Nearly nothing left unexploited in the pursuit of profits.
        
             | SlavikCA wrote:
             | And there is no profit, too.
        
               | captainkrtek wrote:
               | Its very depressing that we're almost quite literally
               | converting money into BTUs via GPUs and not even making a
               | buck, meanwhile the ocean gets hotter
        
         | stuff4ben wrote:
         | jobs...
        
         | maerF0x0 wrote:
         | Makes me wonder about the things that go into datacenters and
         | power plants:
         | 
         | - Air conditioners
         | 
         | - generators
         | 
         | - Racks/Cages
         | 
         | - fire supression
         | 
         | - Concrete, Steel, power lines
         | 
         | etc
        
           | wmf wrote:
           | All those have multi-year backlogs.
        
           | PeaceTed wrote:
           | For all the issues with power use, I do grant it that a lot
           | of materials and labor in needed at the same time. It isn't
           | JUST burning up cash to make Sora videos.
           | 
           | But by the same measure, the Great Egyptian pyramids would
           | have been a huge boom for work even if the final product
           | didn't achieve much for most people.
        
         | derefr wrote:
         | I have a hypothesis that it was AI, not COVID/sanctions/etc,
         | that was mainly responsible for the 2020-to-ongoing "chip
         | shortage." Ignoring companies with their own fabs (Intel) and
         | companies with pre-existing reserved-capacity contracts with
         | fabs (Apple), everyone else is stuck waiting in line behind
         | batch after batch of fab orders from Nvidia.
         | 
         | Downstream of that, AI is effectively also responsible for the
         | current generation of game consoles never declining in price.
         | 
         | Because game consoles are fixed platforms that continue to be
         | manufactured over 5+ years, _normally_ the most expensive parts
         | in the system (the CPU and GPU) would gradually get cheaper to
         | manufacture [and in turn, cheaper to buy] over the course of
         | the console 's lifetime--which was often passed onto the
         | consumer in the form of the console's MSRP gradually
         | decreasing. Either the process node for the console's silicon
         | design would stay fixed, and demand for this process node would
         | gradually decrease as larger fab customers move on to newer
         | nodes, decreasing the (effectively auction-based) pricing for
         | fab time on the older node; or the console manufacturer['s
         | silicon vendor] would put their silicon design through a
         | process-shrink, and so, while still paying top dollar for use
         | of the fab's newest node, would be getting more chips per wafer
         | out of that, and again could charge less.
         | 
         | But instead, what we've seen since the start of the AI boom is
         | that there's no longer any price-reduced timeslots to be sold
         | to manufacture the low-BOM parts for these price-sensitive
         | console-maker customers. Instead, both Nvidia and AMD are now
         | getting such high value out of even the older nodes, that 1.
         | the fabs know they can squeeze them, charging full price for
         | those slots as well; and 2. both Nvidia and AMD, in their roles
         | as silicon vendors to the console makers, haven't been able to
         | justify using (very much of) the time they're paying so much
         | for to fab low-BOM-cost parts to fulfill their pre-existing
         | outstanding purchase orders, when they could instead be
         | fulfilling much-higher-margin _new_ POs from the hyperscalers.
         | 
         | Thus every console of the ninth generation (PS5, Xbox Series,
         | Switch) still selling for their launch price (with no help from
         | process shrinks); thus none of these consoles having been able
         | to be produced in excess of demand to the point that supply-
         | and-demand ever drove retail prices below MSRP; and thus the
         | only tenth-gen console so far, the Switch 2, taking ~4 years
         | longer than anticipated to release+.
         | 
         | ---
         | 
         | + Nintendo were very likely waiting for Nvidia to run off
         | enough of the Tegra T239 _with a sufficiently low passed-on fab
         | cost_ , for Nintendo to both 1. be able to build a backstock
         | and non-run-dry pipeline of Switch 2s, and 2. be able to be
         | positive-margin on charging the same price as the Switch 1 for
         | them. They waited four years, and neither thing ever happened;
         | so they eventually just gave up and priced the Switch 2 higher,
         | and also built out an entirely novel D2C + online-marketplace-
         | partner distribution pipeline so they could ration the tiny
         | initial supply of units they had been able to build with the
         | chips Nvidia had supplied them so far.
         | 
         | Though, that being said, Nintendo actually got a double whammy
         | here. They were _also_ waiting for fast NAND to come down in
         | price, so that they could have physical game cards manufactured
         | for a trivial BOM price while still enabling the  "direct GPU
         | disk-streamed assets" pipeline that games of the last
         | generation had begun relying on. Obviously, as today's article
         | points out, that hasn't been happening either! Thus game key
         | cards; thus SD Express cards only beginning to trickle out,
         | with no sizes above 128GiB available at the Switch 2's launch
         | time; and thus those SD Express cards being ridiculously priced
         | for their capacity compared to equivalent transfer-speed + die-
         | size NAND (as seen in e.g. low-profile/flush-mount flash
         | drives.)
        
           | PeaceTed wrote:
           | That sounds reasonable but I suspect it was a little bit of
           | both. Initially Covid slow down followed by large demand. A
           | lot of older Nodes were shutdown (300-400nm) with the Covid
           | slow down and a lot of chips ended up having to be moved over
           | to newer nodes once demand picked up again. It led to a big
           | swing in the flow of production and would have roll on
           | effects.
           | 
           | Combine that with a huge GPU boom and you have the setup for
           | production issues.
        
         | 1970-01-01 wrote:
         | * True innovation
         | 
         | Every tech startup circa 2023 doesn't do anything without
         | smearing AI all over their front page.
        
         | domador wrote:
         | * Time to wade through all the AI slop
         | 
         | * Trust that what we are watching or reading is human-sourced
         | and real
         | 
         | * Time for real creators' unique voices to remain unique
         | 
         | * Hope for society's future
        
         | penguin_booze wrote:
         | Intelligence. We're lacking intelligence.
        
           | ChrisMarshallNY wrote:
           | AI: "Astounding Idiocy"
        
       | ls612 wrote:
       | Thank god I built my NAS in early October it seems like I got the
       | proverbial last train out of town.
        
         | rwyinuse wrote:
         | Same here, though I did it a bit earlier. Data center SSD's I
         | bought a while back for 50 euros each from Ebay now sell for
         | over 200 euros. Similar increase for HDD's too.
         | 
         | Maybe in 3-5 years there will be a fantastic time to upgrade
         | again, after AI bubble has burst and slightly used stuff gets
         | dumped from data centers to online marketplaces.
        
         | doublerabbit wrote:
         | Same. Wish I bought 2x 12TB drives now rather than 2x8TB.
        
           | ls612 wrote:
           | I bought 3x22TB WD Red Pros to put into a RaidZ1 vdev so I'll
           | be good for a while. I have a clear upgrade path all the way
           | up to 8 drives with 2x vdevs in a pool but that is something
           | for far future me to consider.
        
       | zkmon wrote:
       | This is getting out of control. Like a monster eating off all the
       | things that are needed for normal people. Worse than nukes race,
       | which at least did not affect common man. No one really gains
       | anything. All gains are temporary competitive edge, that vanishes
       | quickly while locking everyone into the vicious cycle.
        
         | fajitaforce5 wrote:
         | Maybe when the bubble bursts there will be lots of good used
         | hardware at massive discounts?
        
           | criemen wrote:
           | But why? Training hardware maybe will appear, but everything
           | that's running inference has real, paying customers on it,
           | with current capabilities level. Even if the bubble bursts,
           | why would that demand evaporate? People still would want to
           | use chatgpt, claude code etc., even if they stop getting any
           | better tomorrow.
        
             | krior wrote:
             | But maybe not for the price it actually takes to run these
             | models. Afaik atm they are all subsidized.
        
               | criemen wrote:
               | I'd expect at least API pricing for all major players to
               | be margin-positive. Positive ROI if you include model
               | training cost? Maybe not, but in a hypothetical scenario
               | where all capital for new model training goes away, the
               | latest frontier model weights still continue to exist.
               | 
               | Subscription prices for claude code et. al? No idea.
        
             | PeaceTed wrote:
             | Yes, but how much do people want to pay to use this stuff?
             | That is the real question.
             | 
             | It might be that more than $30 a month is too much and
             | people stop using it. However, I suspect it would end up a
             | fair bit higher than many would think. If you are a 'whale'
             | (to use the gambling term) then there is a good chance that
             | they could charge in the hundreds of dollars.
             | 
             | Maybe it become a wealth divide between those that can
             | afford it and those who cannot. In equality yet again. Then
             | the echos of Dune, the 'Butlerian jihad' and 'Thou shalt
             | not make a machine in the likeness of a man's mind' will
             | start to come up.
        
         | pinkmuffinere wrote:
         | Maybe the real paperclip maximizer was the irrational
         | exuberance we made along the way :')
        
       | whynotmaybe wrote:
       | Hunger sharpens ingenuity.
       | 
       | Soon we'll see many "AI" product that analyses network storage to
       | identify files that could be deleted because they're the nth copy
       | of some random report that was never published.
        
         | walterbell wrote:
         | Cloud storage and on-prem storage vendors have long provided
         | deterministic block-level dedupe via hashing, without expensive
         | LLM content analysis.
        
       | mschuster91 wrote:
       | So, it's Chia all over again? [1]
       | 
       | Sometimes, I think government supply control isn't that much of a
       | bad thing. That way, the government could force the availability
       | of goods for the common market as well and not just for the
       | really big dogs flush with ample VC money to burn who can pay any
       | price.
       | 
       | [1] For the uninitiated: a cryptocurrency where the limiting
       | factor wasn't CPU, RAM or GPU compute resource, but storage - in
       | 2021, there was so much craze around it that HDD and SSD prices
       | exploded, and after the bubble collapsed _a lot_ of heavily
       | abused drives flooded the markets.
        
       | Neywiny wrote:
       | I just got 2 16TB drives for $90 each off Craigslist. Perfect for
       | video game storage or downloading huge AI models or whatever. Or
       | legit Linux ISOs. Wish I got more but I was too late. Can't find
       | anything close to that price online
        
         | jdprgm wrote:
         | $5 a TB is insanely cheap and someone just getting rid of stuff
         | and not really caring about the price. Nothing has ever been
         | that cheap at retail or manufacturer recertified. Lowest was
         | like $9-10 last year and now we are sitting at more like $15.
        
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