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Chips aren't getting cheaper to make — the cost per transistor stopped dropping a decade ago at 28nm
(www.tomshardware.com)
this post was submitted on 04 Feb 2024
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Last I looked at this, profit margins in chip industry are pretty thin. Profitability comes mostly from volume. This article gives a pretty good overview of the dynamics in the industry https://compactmag.com/article/fighting-a-chip-war-on-the-cheap
Right, key part is that there needs to be constant massive demand for the whole thing to be profitable. AI hype will die down eventually, so that's not gonna be a sustainable long term cash cow for them.