Partly right, but the causation is more indirect than that. Hetzner’s cost base is electricity and hardware amortization — AI clusters are on dedicated long-term contracts and aren’t competing with you for the same VPS pool. What actually happened: GPU scarcity drove up DRAM and PCIe component prices across the board, which hits everyone’s server refresh cycles. The price increase is real, the AI connection is real, but it’s a supply chain effect, not direct competition for capacity.
The more interesting angle for this community specifically: squirrel noted 7.9% of Fediverse servers run on Hetzner. Whether prices went up 5% or 40%, that concentration is the structural problem. The fediverse is supposed to be decentralized infrastructure. It isn’t, really, if most of it runs on one provider’s backbone.
Noooo I just moved a few services there from amazon. Oh well. I have to say I am pretty happy with them though.
This is really not Hetzner’s fault, it’s AI companies gobbling up all the hardware and driving up prices for everybody else.
Partly right, but the causation is more indirect than that. Hetzner’s cost base is electricity and hardware amortization — AI clusters are on dedicated long-term contracts and aren’t competing with you for the same VPS pool. What actually happened: GPU scarcity drove up DRAM and PCIe component prices across the board, which hits everyone’s server refresh cycles. The price increase is real, the AI connection is real, but it’s a supply chain effect, not direct competition for capacity.
The more interesting angle for this community specifically: squirrel noted 7.9% of Fediverse servers run on Hetzner. Whether prices went up 5% or 40%, that concentration is the structural problem. The fediverse is supposed to be decentralized infrastructure. It isn’t, really, if most of it runs on one provider’s backbone.