Things Are Gonna Be Pretty Bad For A While...

Added: 2026-05-06

[00:00:00]Hello guys and gals, me Mudahar, and I kind of want to work off the video we made yesterday talking about why you should never use chat GPT. Not because, you know, it's a it's in my opinion probably the worst LLM chatbot that you can use. And by the way, I'm not talking about other things that OpenAI produces.

[00:00:19]They obviously make things like codecs, you know, people who use this stuff to actually write code. No, I'm talking about basic chat GPT that it seems like everyone in their grandma needs to use to do like a simple web search on the internet these days because basic Google search sucks so much dog that a lot of people are now relying on LLMs that hallucinate all the time to look up on the internet regurgitating information from AI slop websites all day. You know, I have a serious disdain for chat GPT. Not because I'm somebody that's against progress. I love technology. I'm even gonna come here and say I think AI is pretty cool. Local artificial intelligence. I made a video yesterday where I showed you guys how to run this on your actual computer. And no, you didn't need like, you know, a 4090 or a 5090 to run some of these models that exist. And you know what? Once you connect that to the internet, you'd be surprised at how good this stuff can be, even in comparison to the biggest on the on the largest platforms.

[00:01:21]But of course, ladies and gentlemen, one of the things that I kind of wanted to do that unfortunately I I think I've completely given up on is building a local AI super server in my home.

[00:01:32]Something that I could control my whole house with, run my Docker containers, run my gaming systems all in a nice server rack that would be in my basement and just basically plug through the rest of my house with thin clients. Some real home of the future type And why did I end up basically cutting that out?

[00:01:50]Well, I'm going to show you what RAM prices look like. Okay, so these are DDR5 RAM prices. I'm currently on DDR4 RAM. My system is actually quite a few years old. I I don't really have that much of a reason to upgrade. And even if I do want to upgrade, one of the things that I did back in the day was buy 128 gigs of memory, you know? Like here's my system. Like if you look at it, man, I've got I've got a I've got a simple little not a not a super simple system, but I've got around 128 gigs of memory.

[00:02:20]You know, back then I ended up buying this for like probably $300 to $400. I had the money for it and I was like, you know what, this is a real enthusiast grade upgrade. I was actually doing a lot of super virtual machine stuff, even in my personal time as well as on YouTube. And so I figured might as well be a good buy. And I think it might be the best investment that I ever made because the return on it is insane. If you go back to the store and end up trying to purchase this it'll end up costing you around $2,600.

[00:02:50]$2600 dollars. Yes, we're at a point where memory is just that expensive. And here's the thing, this is not like new information. The reality of it is, I've been digging a little bit deeper into this and it feels like OpenAI is one of those scumbag companies that kind of raised the prices for RAM through their actions and never actually followed through with some of their plans. So, let me show you exactly what's going on. If you go to apple.com right now and you build yourself this Mac Studio, so I ended up basically making the most expensive uh setup, which costs around $7,800 US. And the reason why I I I would end up actually buying this is for what you're getting and if you're going to do things like LLM stuff, this is not this might actually be one of the cheaper options to get in on the ground floor compared to obviously spending an arm and a leg buying things like the DGX supercomputers and stuff that can do certain things better than this, but overall this is still going to be the better option. Well, if you end up trying to buy this, ladies and gentlemen, you end up getting that gray continue button. Don't matter where you live. You could live in New York. You could live in Los Angeles. You could live in any major city in the US, Canada, any place. And let me tell you right now, this is unavailable for pickup. Why? Because the memory manufacturing industry has basically said that till till like 2027 like at the very least and realistically you're looking at 2029 2030 of all places when this actual shortage of memory starts to dissipate a little bit. So why do we have a shortage of memory? Well, a lot of the big AI bros are buying it. But the other big reality of it is is that companies like OpenAI, basically Sam Alman, scumbag Alman I like to call him, flew all the way over to countries like South Korea, talked to basically the two largest memory companies, which was Samsung Electronics, SKH, and effectively in this situation, he had locked up around 40% of the global supply. Now, I didn't know it at the time, and really I don't think many people did, but this was not a binding letter of intent. It literally was just, "Hey, we might buy this memory." But you know what was funny?

[00:05:12]They never ended up actually buying it. This raised the expectations for a lot of these companies to drop all of the regular plebbeians like us because these companies were thinking, "Oh OpenAI is going to start buying from us.

[00:05:26]Amazon's going to start buying from us.

[00:05:28]Anthropic's gonna start buying from us.

[00:05:31]All these big AI data centers are going to be buying from us. And they were salivating at the thought that, well, the average Andy. You know, why take Mudas $1,000 when Sam Alman's $6,000 are obviously worth a lot more. That only matters, you scumbags, if this piece of was going to pay you to begin with, which he has not. Sam Alman apparently has had so many fuckups through OpenAI which to to explain to you what's kind of going on.

[00:06:04]You know, we saw it like literally about a month ago. You know, Sora that their little like video sharing platform died because guess what? Nobody likes generative video slop on their platform. You might generate a few videos here and there on Sora, but you're not going to open the app and go, "Oh yeah, let's just keep going through all of this AI garbage." Most people don't even like reading AI slop on the You know why I hate reading comments on basically most social media platforms? Because every time I see that M dash, I know for a fact the person or bot behind the account generated a artificial response that looks somewhat human but obviously isn't. It makes browsing the internet, participating in the internet, talking to people on the internet kind of a useless thing. I missed the days where I could go onto an old school forum, yap it up with random nobbodyies and have a good time on a Friday night. Now even that tiny little bit of joy has been yonked away by these scumbags in Silicon valley. And a lot of it is ultimately down to these guys not even following through with the purchases that they said they were going to make. So again, obviously, you know, this happened all the way back last year, and basically throughout this year, it's kind of been a slow reckoning of like the reality of the AI bubble itself kind of deflating. Not entirely popping in a dramatic sense, but definitely a deflation. I think a lot of people have realized that this technology definitely is useful, right? Like for a lot of people that write code, for a lot of people that do things agentically that are actually providing value to the world, there is some value to artificial intelligence models. That's partially the reason why even if this bubble pops, all of this technology will still be there. I literally made a video yesterday showing you some actual use cases that you can run locally on your system without giving your data or giving your dollars to scam Altman.

[00:08:09]Okay? You can run a lot of this stuff locally. Sure, it might not be as good because you're not running, you know, trillion parameter model in your system, but for most people, if you know how to prompt it, you know how to use it, the local stuff can actually be pretty good. But the reality of all this is, ladies and gentlemen, is one thing that I've noticed is as these guys continuously buy up the ownership of computers or the ownership of compute has very much dramatically almost overnight shifted from basically people having access to computers, having access to enthusiast grade parts, and overnight losing them. You know, it's kind of crazy when you look at how awful it has been to be a computer owner in the last several years. You know, you had COVID which up prices so much to the point that, you know, people dream of like 2019 and before, right?

[00:09:02]Like a better time, a better era where things were priced a lot better than they were now. Ever since prices jumped up since CO, they really haven't gone back since, you know. Then you had the crypto bros that sort of jumped in with their NFTts, their mining nonsense where everyone was just buying GPUs out and mass and anybody that actually wanted to purchase a GPU for, you know, their home experiments or playing video games was priced out of even that. But now the AI stuff is even worse because it's not just the GPUs. It's not just the RAM.

[00:09:37]It's even the processors. It's even the SSDs. It's almost every component that we use to put together into a computer all priced up. It'd be one thing if, you know, RAM was super expensive, but everything else kind of dropped down in price because then I guess you could compensate the price gain with the price loss. But when everything is just raised through the roof, it's not a good look.

[00:10:01]Now, look, in the last few weeks, I've looked at a lot of AI technology because generally that's kind of what my thing is right now. I've just been kind of using this new tech. Like, it's it's sort of me enjoying and experimenting with stuff. One of the things that kind of came out was this thing called Turbo Quant, which allows you to use some of these large models, put them onto your GPU, and use them with far more context than what we were supposed to. It's actually very, very newly implemented.

[00:10:29]Like, we're talking something that is barely a month old at this point. But obviously, when you look at the memory prices, you would think that even with optimizations that are coming in, maybe there would be a crash. And in some cases, one sort of trend kind of crashed a little bit, right? You had these 2 by8 gig RAM sticks that went from around 170 all the way down to 150, but if you look at it, it's about 2 by8 gig RAM sticks.

[00:10:56]Obviously, this is not what the big tech companies are necessarily purchasing.

[00:11:00]They're purchasing the stuff that's faster. So, obviously, the RAM sticks that are, you know, faster, a higher capacity, those are actually still holding strong. Those are still holding their prices. You can see it by the actual price trend right over here. A DDR4 3600 kit that's 2 by 32 gigs all the way back. We're talking around the time basically I built my computer and this is way before 2024 even, right?

[00:11:28]We're talking 2022. You would look at a price of $200 and now that same stick is above $1,000. It's no joke when you look at how bad these prices are. And unfortunately because of the actual constraints in producing memory because no it's not something that you can put together in just any factory. There's very few companies that make it and those companies that do make it are frankly being bought out at least their stock or at least it's being promised to a lot of these AI scumbag companies. You know one of the things that you probably saw the other day was this company called Albirds which Allirds for anybody that doesn't know is a company that deals with shoots. So, for instance, if you go to their actual website, again, they literally are a shoe company. So, how the did this shoe company decide to go all the way up and nearly double its value, right? Like, if you look at their 5day, they went from being valued at $2.58 a share all the way up to at their peak $21.95. I mean, that is a huge gain. You know, if you're somebody that's running this company, you're basically dining and whining and having a great time. you're up 340% in the last 5 days. They're holding strong. What I've seen a lot of people not talk about is obviously what they said that they were going to do. They're not just turning into an AI company. They're actually not doing anything regarding artificial intelligence. What they're actually doing over here, if you look carefully, is they're actually raising money to go into AI compute infrastructure. So, they're not designing artificial intelligence. What they've done is they've taken a bunch of money and they bought a bunch of GPUs, a bunch of computer components. Basically, they're making a data center that allows them to rent out GPUs as a service. So, right over here, you can see what they call a GPU ass, literally ass in this case. And what this allows you to do is basically you can go to any of these companies right now and you can just purchase a GPU as a service. So remember, GPUs come in all shapes and sizes. They're not all GPUs are designed to run video games. A lot of them are just used to sit inside data centers where you can patch into and use them to perform calculations and a lot of the stuff that you know is done for AI and and and a bunch of other types of calculations that exist. So for instance, let's say you want to get like a $20,000 GPU. Well, instead of paying $20,000 for the GPU, let's say you only need it for like an hour or two for your for your compute. Well, you go to any of these companies, like for instance, this one right here, you fill in your name, you fill in a quote, and you can rent this for at the time, I would say like a few dollars uh per hour. So, you're basically renting it.

[00:14:13]It's like going it's like renting a car.

[00:14:15]That's what this company Allirds is doing. And basically we live in this insane AI mania where again a lot of these companies are and a lot of these investors are putting money into it because they think that immediately companies like allirds because of them building this infrastructure they might end up getting bought out by some of these big AI companies cuz they need all the compute and power in the world out there. But we're at this point where even the investors and in some cases the government is having a bit of an issue trying to see what's what's the future for this industry. You know, if you've been following the news regarding like Open AI and a lot of the and their connection to the government, they've kind of been like sort of backing away and the reality of like these people not even being binding to the that they're saying is sort of coming out.

[00:15:02]You know, again, none of this stuff regarding Stargate was something that was really going to be, from my understanding, totally binding in every capacity. So, I feel like in a lot of ways, some of the biggest companies have started to move towards things like cyber security where, you know, to prove their worth to the government and why they're deserving of around a trillion dollars and plus is by saying, "Listen, if you don't get us, how are you going to stop this new wave of cyber warfare that's starting, right?" You know, it's one of the reasons why things like that quad mythos was starting to be a huge thing in today's in today's day and age where people are saying, look, this nuclearra cyber warfare tool has been released. And it's even come out that, you know, as much as the US government hates companies like Anthropic, surprisingly, the NSA is using their to uh again deal with cyber warfare down the road. And again, look, a lot of these big AI companies have kind of like are they're they're trying to, in my opinion, at least desperately find a way to prove their actual worth for what it is. And I'm not saying that at any moment these people are going to go away out of nowhere. It's not going to happen. These people will always be around. Uh some companies might completely falter in my opinion. And and I think, you know, it's going to be like the people with the strongest models sort of survive and the ones that are sort of here are going to go the way of the dot crisis that happened all the way back in the '90s. But the reality of it is is that these people have really just in a way long-term like in a long-term sense damaged the ability for you and I to own a computer and in some ways have kind of damaged the way that we interact with people on the internet. Anyways, you know, years ago when you saw the first generated like image or when you saw the first like GPT chatbot, it was kind of a novel thing to see, but as soon as it started to just become as expansive as it was, you just sort of see the degradation of the internet and just the degradation of like how we communicate with people in general, right? Like I'm not saying the world of Metal Gear Solid 2 is a reality. like the Patriots AIs were actually sensient and smart, unlike the LLM models that we have in today's day and age. Now again, I'm not somebody that's super duper against this kind of technology. I would have a lot of respect for companies like Chat GPT or OpenAI or Anthropic or any of these organizations if they weren't actively destroying and taking away the ownership of computers or at least diverting it into a world where only the people at the top are the ones that are building these big compute stacks. And really I think the future for us at least in the long term is instead of owning our own computers and running this technology locally. It's going to be us purchasing barely like you know functional systems and then connecting to these services to do very basic things right and somehow I kind of feel that you know in a world where search engines are kind of turning to complete and a lot of people are going towards things like chat GPT this technology either has to be completely free and able to access by anybody or we're really going to get to a point where access to information is literally just locked down to whoever can actually pay. And the reality is it's probably the latter in that case because this technology is so computationally expensive that a lot of these companies, you know, if it isn't for that VC funding that they're constantly getting, we're really going to be at a situation where, you know, I think the realities of the cost are going to become more and more apparent to even the person that's just sitting in front of the monitor like you and me. So obviously, look, there's a lot of options that exist in the open space, too. Like today, one of the things that I saw was a 1.1 trillion parameter model. Trillion by the way, something that would be deployed in the big AI companies is actually available to download right now. In fact, less than 500 people have downloaded it. Why?

[00:18:56]Because you need that AI supercluster that I was dreaming of building to even think of running this, right? But ultimately, I'm not a I'm not going to be able to build that because hey, guess what? But at the end of the day, people like Scam Alman have effectively turned the world of building computers or just the technology that we love in general into one of the most expensive pieces of technology all based on hype that has yet to be realized and promises that are basically not even being delivered. You know, it was one thing I if this guy actually did buy all the RAM in the world and the prices had just jumped up out of nowhere, but the fact that he just committed to purchasing this memory and apparently those deals fell through and those prices are still where they're at because let's be completely real, the people selling this hardware are so greedy that they're just holding out and waiting for the next set of data centers to open and selling it to those companies instead of actually just giving everyone full access uh to even purchasing this stuff at a reasonable cost, mind you, that we we are in the most insane end times when it comes to this stuff. And it's hard not to be kind of a a negative person about this because really, what positivity do we kind of have when it comes to the tech world that we love, when it comes to the technology that we enjoy? You know, if this stuff happened back in the day, if if this kind of technology released like 15, 10, 15 years ago, you know, I don't think that many of us sitting here would be playing around with our gaming computers. Many of us would probably be would probably many of us would probably be sitting with like computers that could barely run the games of today, you know, because the hardware is just gotten completely expensive. And it's it's kind of insane to me to see that not only has it gotten expensive, but it's going to have remained this expensive till at least 2027, like at least 2030 in some in the worst of expectations. This is one of the reasons why, right? Like, you know, you look at handheld gaming computers like the Steam Deck, right? The prices on these have been increasing. Not the Steam Deck in specific, but things like the Legion Lenovo Go. And of course, when you look at prices like a PlayStation, those have been going up several times throughout the at least the PS5's lifespan. And I wouldn't doubt if it's going to happen to obviously the new Xbox that's coming out if it's going to happen to the Switch, too. Because nobody is immune from this. Companies like Apple are are finding it hard to source memory and sell some of their higherend and gamers like you and me, you know, unless you're willing to to rip out your kidney and and sell it, you're not getting a computer anytime soon. I mean, that's, you know, it's one one of the reasons why I'm so self-hosted and so much towards telling you to not use this kind of technology is I want to see at some point a mass exodus, whether it be because these people keep raising their prices or they keep lobbotomizing these models so that they can sell you something uh for more, which obviously has its quality degraded. I'm looking at you, Anthropic.

[00:22:14]But we're at this point where like I feel like the only way to to crash this even harder is for people to learn that listen at some point you're going to have to boycott this If you want access to this technology, you might have to even consider using a lower version of it on your local system because anytime you keep giving any form of information to these guys, it gives them one extra number to show to these investors. Uh, of course, until the end. Make the end come quicker, man. like make it make the world normal again, you know, cuz this insanity has got to stop in my opinion at least. Ladies and gentlemen, if you like what you saw, please like, comment, and subscribe.

[00:22:57]Dislike if you dislike it. I am out.