Michael Dell: Just-in-time manufacturing could be a hit if the AI bubble bursts
Source link: Michael Dell: Just-in-time production can be a hit if the artificial intelligence bubble bursts. Michael Dell announced in an interview that the Just-in-Time Manufacturing system can help reduce pressure and possible losses if the artificial intelligence boom subsides. He also predicted that the shortage of memory chips will worsen. Source site: Safir Arjan
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Michael Dell announced in an interview that the Just-in-Time Manufacturing system can help reduce pressures and possible losses if the artificial intelligence boom subsides.
He also predicted that the shortage of memory chips will worsen.
By relying on just-in-time production and a negative cash-flow cycle, Dell is preparing to face a possible downturn in the artificial intelligence market.
Unlike many AI infrastructure companies that operate with heavy debt, Dell mainly manufactures servers based on customer orders; An approach that reduces the amount of capital involved in inventory and the risk of product accumulation.
However, Michael Dell warns that the shortage of memory chips may worsen next year.