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OpenAI · Memory shortage1 min read

OpenAI's Sam Altman says computer memory belongs in data centers

OpenAI's CEO says RAM is better used in data centers than in home PCs, while a memory shortage pushes up the price of laptops, phones and other gadgets.

By the Dashline deskSource: The Verge
OpenAI's Sam Altman says computer memory belongs in data centers
Photo: Victorgrigas, CC BY-SA 3.0

OpenAI CEO Sam Altman says it is "terrible" for so much of the world's computer memory to sit inside personal PCs instead of data centers. He said so on the Cheeky Pint podcast, when asked about supply shortages, including the ongoing RAM shortage.

What he said

RAM is the short-term memory a computer uses while it works. Altman said many people want to run AI on their own machines using open-source models, and assume that means data centers matter less. He disagrees. In his view, memory in home computers is used only about 5 percent of the time. He argued that cloud systems can keep it far busier, which matters when supply is limited.

This is not a neutral view. OpenAI's Stargate project is one of the big buyers pulling memory away from the consumer market.

Why gadget prices are rising

Samsung and SK Hynix have long-term deals with cloud operators and projects like Stargate. Those deals have reserved much of the world's RAM output over the next few years. The billions these buyers are willing to spend on chips is why laptops, phones and other tech are getting more expensive now.

  • Samsung expects the RAM shortage to last until at least 2028.
  • SK Hynix says memory shortages will last through 2030.

The material does not say how much more devices will cost or when prices might ease. Anyone planning a purchase should expect higher prices for now.

The takeaway

AI companies are reserving much of the world's memory chips, so expect higher prices on laptops, phones and other gadgets for now.

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