More or Less · Topics · Episode #160

Nobody Can Explain the Compute Market Right Now

Clip from the full recording, 34:07–40:27 · download mp4 · watch at this point on YouTube

Wall Street is fighting over whether AI compute is about to get much more expensive or much cheaper; Dave says from the ground at OpenClaw, all he sees is bottlenecks everywhere, RAM stocks be damned.

Jess frames the debate raging among the “Gavin Baker types” of tech investing: some think compute is about to get wildly more expensive as long-term contracts come up for renewal at higher rates, better margins for the infrastructure providers; others think the opposite. Jess is skeptical of the “renewal shock” thesis, assuming labs have already planned for it, and asks Dave whether there’s a clear pattern coming on compute pricing.

Dave says he honestly doesn’t understand what the market is pricing — RAM stocks like Micron are down double digits even as, from his vantage at OpenClaw, every signal points the other way: the whole chip and RAM supply chain is running at full capacity and still can’t meet demand, with zero evidence token demand is falling. He makes it concrete: OpenClaw has been so constrained on Mac compute for running multi-agent engineering workflows that the company partnered with Apple on a custom batch of Mac Studios just to unblock its engineers, and the constraint runs across the entire stack — frontier tokens, rented GPUs, and the Mac Studios sitting on engineers’ desks that manage the agents in the first place.

Key points

  • Jess: investors are split on whether AI compute is about to get much more expensive, as long-term contracts renew higher, or much cheaper.
  • Jess is skeptical labs will get caught flat-footed by contract renewals; assumes they've already planned for it.
  • Dave: doesn't understand the market reaction — RAM stocks like Micron are down sharply even as demand signals point the other way.
  • Dave: the entire chip/RAM supply chain is running at full capacity and still can't meet demand; no sign token demand is falling.
  • Dave: OpenClaw has been so compute-constrained running multi-agent engineering that it partnered with Apple on custom Mac Studio configurations just to unblock engineers.
  • Dave: the constraint spans the whole stack — frontier tokens, rented GPUs, and the local Mac hardware needed to manage the agents.

Where they landed

JessDoesn't buy the bearish "contract renewal shock" thesis; assumes sophisticated labs have hedged it.
DaveFrom the ground, sees only bottlenecks and rising demand, and can't reconcile that with a falling RAM/compute-stock market.

Quotes

“”— Dave
“”— Dave
“”— Jess

Suggested tweets

Micron's down double digits. Dave Morin, from inside OpenClaw: “I don't see any signal that demand for tokens is going down. I only see bottlenecks.”

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Investors are fighting over whether AI compute is about to get way more expensive or way cheaper. Dave Morin: “I don't really understand what the market is doing right now.”

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OpenClaw got so compute-constrained it partnered with Apple on custom Mac Studios just to unblock its engineers

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