Memory and silicon production set to 4x; older chips sufficient for future models

teortaxesTex · x · 2026-08-21

Amidst discussions on GPU demand, one view suggests current pricing issues are short-term blips. Memory and silicon production capacity is projected to quadruple in the next 4-5 years, potentially outpacing demand growth. Additionally, older hardware like H100s is considered sufficient to run models released years later (e.g., GLM 5.3), meaning most consumers won't need the latest 2nm chips. Industry insiders indicate that at prosumer levels, companies are willing to keep margins low to sustain demand.

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