Investor Ramez Naam argues competition will push HBM prices toward production costs despite high utility for AI workloads

@geoffreyirving @ChrisPainterYup Agreed. But market clearing price isn't set by value, per se. In a world where there are competing suppliers, prices should descend to some healthy margin over cost, even if value for some use cases is many many times that. Monopolized supply would be different, of course.

@ramez @ChrisPainterYup (HBM, that is)

@ramez @ChrisPainterYup Hmm, that’s still the predictability factor. There are many markets where a good X can be used for two larger goods Y and Z, but no matter much X you make it’s better to put it in Y, not Z.

For example, Y = new computer, Z = ancient computer.

The worry is the Z = human case.

@geoffreyirving @ChrisPainterYup Will sleep on that. :)