They can only pay so much because of the expectations about the generated value. Those might turn out wrong, as any expectation, but value is very much in the picture.
If by value you mean profit, but that's a conflation that you shouldn't be making. Often profit is generated by actively harming people (eg. human trafficking).
No, you pay the most if you believe that you might get the most value out of it.
Moreover, the AI companies have not bought anything with their own money, but with the money of naive investors who believe that their money will be used by the AI companies to buy things out of which they will be able to get the most value.
So for now, this is strictly only speculation, which has driven the prices sky high. It remains to be seen who will really get any value (besides Micron, NVIDIA and the like, who have got good money for their products).
Comments
You mean those who can pay the most for them? Value is not in the picture here.
They can only pay so much because of the expectations about the generated value. Those might turn out wrong, as any expectation, but value is very much in the picture.
If by value you mean profit, but that's a conflation that you shouldn't be making. Often profit is generated by actively harming people (eg. human trafficking).
I'm not.
Then the value-expectations are even more dubious and harder to justify.
I don't need to. Those who get it get it. Apparently that doesn't include you, and I'm fine with that.
You probably mean that those with money decide what has value or something like that. If you don’t want to talk that’s fine by me.
You can pay the most if you can get the most value out of it
No, you pay the most if you believe that you might get the most value out of it.
Moreover, the AI companies have not bought anything with their own money, but with the money of naive investors who believe that their money will be used by the AI companies to buy things out of which they will be able to get the most value.
So for now, this is strictly only speculation, which has driven the prices sky high. It remains to be seen who will really get any value (besides Micron, NVIDIA and the like, who have got good money for their products).
in Capitalism value=profit
OK I accept this definition for the scope of this comment, but there's no profit on the horizon.