Exiting the consumer market is likely a mistake by Micron.
I actually think their move to shut down the Crucial channel will prove to be a good one. Why? Because we're heading toward a bimodal distribution of outcomes: either the AI bubble won't pop, and it will pay to prioritize the data center customers, or it will pop. In the latter case a consumer/business-facing RAM manufacturer will have to compete with its own surplus/unused product on scales never seen before.
Worst case scenario for Micron/Crucial, all those warehouses full of wafers that Altman has reserved are going to end up back in the normal RAM marketplace anyway. So why not let him foot the bill for fabbing and storing them in the meantime? Seems that the RAM manufacturers are just trying to make the best of a perilous situation.
But why not just keep the consumer brand until stockpiles empty and blame supply issues until things possibly cool down, or people have forgotten the brand at all.
I imagine the strategy would get out anyway as soon as retailers tried to place their next round of orders. Might as well get out in front of it with a public announcement. AI make line go up, at least for now.
I actually think their move to shut down the Crucial channel will prove to be a good one. Why? Because we're heading toward a bimodal distribution of outcomes: either the AI bubble won't pop, and it will pay to prioritize the data center customers, or it will pop. In the latter case a consumer/business-facing RAM manufacturer will have to compete with its own surplus/unused product on scales never seen before.
Worst case scenario for Micron/Crucial, all those warehouses full of wafers that Altman has reserved are going to end up back in the normal RAM marketplace anyway. So why not let him foot the bill for fabbing and storing them in the meantime? Seems that the RAM manufacturers are just trying to make the best of a perilous situation.