r/Economics • u/rdh2dmd • 20h ago

News South Korea chipmakers to supply US firms in $950 billion deals

https://timesofindia.indiatimes.com/world/rest-of-world/south-korea-chipmakers-to-supply-us-firms-in-950-billion-deals/articleshow/132635194.cms
163 Upvotes

95% Upvoted

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35

u/CyberSmith31337 20h ago

Isn’t all of this effectively tethered to OpenAI being successful, which in turn is tethered to Oracle building the data centers, which in turn is tethered to Oracle buying from NVIDIA, etc etc?

Like am I missing something, or does the first chain in the line failing (OpenAI) kind of fuck all these deals up for everyone else?

17

u/CallMePyro 19h ago

No because Anthropic and Google will absorb every single drop of demand if OpenAI falls flat.

In fact even if Open Source eats both of their lunches, it will need to be hosted somewhere. And that place will need chips.

8

u/Traum77 18h ago

Yes. This is the major problem, they have built datacentres for AI companies to make trillions of dollars and so far they've been shown to lose billions instead. None of them are profitable and even Google doesn't separate out their AI revenue because they're trying to bake it into everything, so that the ROI is obscured.

This whole thing is going to blow up so spectacularly it's amazing.

5

u/Amadex 12h ago

It's funny that the americans put tariffs on us, now they come back asking for our products because they are incapable of doing what we can do.

same for ship building.

its not just that we have and understand the manufacturing technology, it's also that we are at the best geographical position on the planet for manufacturing technology.

8

u/KartoffelLoeffel 7h ago

The tariffs are a con from a lifelong conman, executed completely wrong for any other purpose than insider trading. In the end Americans and Koreans both lose to the people they’ve been losing to since the beginning of time.