Odaily Planet Daily report: During SpaceX’s earnings call this morning, analyst Doug Anmuth asked Elon Musk: “How do you view the supply and demand dynamics in the future computing power market? Is the current high pricing power in this business sustainable?”
Elon Musk responded: “The biggest bottleneck for AI scaling right now is still memory. Memory production is currently growing by about 20% per year—an astonishing rate for any mature industry. But the question is: Is demand also growing at 20%? No! I believe demand is growing at roughly 200% per year, possibly even higher. If demand grows far faster than supply, then according to the most basic principles of economics, prices should rise, not fall.”