Honest Investor

$NVDA $TSM $MU $SNDK $LITE Compute Is Getting More Expensive in China. Just remember Price follows Demand. - Major Chinese cloud and AI providers are raising prices for AI compute services amid surging demand and tightening supply of high-end computing power. - Tencent Cloud announced around a 5% price increase for its AI compute services as well as Tencent Kubernetes Engine (TKE) and Elastic MapReduce (EMR) products effective May 9 2026. - Alibaba Cloud is raising prices on compute card products such as the T-head Zhenwu 810E by 5% to 34% and increasing its CPFS (AI computing edition) file storage service by 30% with revisions starting April 18 2026. - Baidu Cloud is hiking AI compute offerings by about 5% to 30% with adjustments taking effect from 00:00 Beijing time on April 18 2026. - Zhipu has raised pricing for access to its most advanced AI models by at least 8% coinciding with the launch of GLM-5.1 marking multiple price hikes this year. - The hikes reflect explosive growth in AI applications driving strong demand while high-end GPU and compute capacity remains limited creating supply-demand imbalances. - Suppliers are increasingly prioritizing large stable orders and shifting focus toward revenue generation after years of heavy investment in AI infrastructure. - The trend signals that computing power is becoming a scarce resource in China's AI sector with leading firms leveraging their scale to monetize services more effectively. - Smaller companies startups and mid-sized firms face higher costs which may force cuts in non-core R&D delay projects or accelerate industry consolidation.

Dougie- have you been to the hallowed out shell that used to be Chicago recently? Still some great spots, but definitely not on the rise