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> On October 1st OpenAI signed two simultaneous deals with Samsung and SK Hynix for 40% of the worlds DRAM supply.

The market doesn't believe they can pay for the Oracle cloud deal. Why do these vendors believe OpenAI can pay for 40% of the world's DRAM?

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They definitely can, as anybody could, for a short enough period of time. The only ones betting they'll be able to sustain it for a long period are the ones paying the currently very inflated price for ram.

> for a short enough period of time

but it's not a short term deal. funny enough, there's a cohort of bonds that never even made one payment. They are called first payment default bonds. There is a cheekier nickname for them, but it escapes me at the moment.

Suckers Buckers seems safe enough for work to say on a text only Internet thread. Just don't read it aloud.

Ironically this deal has increased DRAM prices so much that if OpenAI doesn't pay, Samsung/Hynix can make more money selling on the open market.

unless everyone else walks when they sense the "big buyer" has reneged.

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