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- AI will take up 20% of the global DRAM supply by 2026, analysts predict.
- The next phase of the AI race is based on memory capacity and inference costs.
- HBM and GDDR7 memory are leading the demand due to their cost efficiency.
AI is rapidly advancing, and while this development is a breakthrough for tech overall, we can’t really undermine the downsides that the world is facing with such accelerated growth.
One major limitation is that AI growth is causing a worldwide memory shortage, which in turn is raising the price of major electronics. One report estimates that AI will consume 20% of the global DRAM supply by 2026.
Why it matters: With AI taking a massive chunk of the DRAM supply, it’s no wonder that we’re seeing RAM prices go through the roof. The entire landscape of electronics is deteriorating.
Industry analysts predict that global cloud high-speed memory consumption could surpass 3 exabytes or 1,000,000,000 gigabytes. Google (Gemini), AWS (Bedrock), and OpenAI (ChatGPT) will each consume 750 petabytes of memory in real-time demand, which doubles when redundancy and safety margins are included.
Other than that, private cloud AI, which comprises Meta, Apple, China, etc., consumes 800 petabytes, and training next-gen AI models takes another 500 petabytes of memory.
The next phase of AI isn’t about raw computing; rather, it will focus on memory capacity and inference cost, evidenced by how rapidly AI is consuming high-speed memory.
Specifically, HBM and GDDR7 memories are in higher demand for high-capacity storage, and AI models are opting for these memory types. To further explain, 1GB of HBM memory costs the same as 4GB of standard DRAM, whereas 1GB of GDDR7 costs the same as 1.7 GB of standard DRAM.
As such, GPU prices are also set to increase as soon as January of 2026, and reports suggest that Nvidia is cutting down supply for the RTX 50-series by 50% and even cancelling the super lineup.
Unfortunately, things are only set to get worse: DRAM demand from AI will continue to increase, while supply will further tighten. Amid this situation, Micron, one of the largest consumer RAM manufacturers, has exited the market and is now focusing on the enterprise segment.
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[Staff Writer]
Shaheer is currently pursuing a Business degree while also working as a part-time Content Writer. With his deep passion for both writing and video games, he has seamlessly transitioned into a role as a Journalist. Over the past two years, Shaheer has contributed as a freelancer to various websites and landed positions on acclaimed platforms like Gamerant. Currently, his role at Tech4gamers is as a Features Writer, but he also covers News occasionally. Shaheer’s favorite gaming franchises are Assassin’s Creed and the God of War series.
Get In Touch: shaheerzahid03@gmail.com
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