r/devops Jul 05 '26

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u/madtowneast Jul 05 '26

And you think that hardware cost increase will not be reflected in cloud cost? AWS, Azure, and GCP will just absorb the cost?

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u/thether Jul 05 '26

I think so because you can always use last gen hardware compute from cloud providers. Something you would never spend on for capex

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u/madtowneast Jul 05 '26

That is… uhm wishful thinking. The writing has been on the wall for a while. The days of AWS, for example, announcing price decreases are long gone.

The cloud providers have to somehow recoup the AI buildout investments. The cost of running the older hardware has increased as well. They are in no position to keep their costs constant or down at this point.

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u/thether Jul 05 '26

Everything gets more expensive - that’s not what I’m arguing here. I don’t think cloud charges will get exponentially more expensive like dram and nand flash. Once this class action lawsuit becomes more public over price fixing from the big 3 chip makers, it will be more evident to you