RAM, short for random access memory, is the high-speed, short-term storage that allows computer programs to quickly access the information they need—it’s a crucial component of nearly every electronic device we rely on every single day. The price of RAM has risen steeply since last fall, but there may be a bit of a break on the horizon.
What’s going on with the RAM shortage?
Demand for RAM is soaring, in large part thanks to AI. As The Verge reports, companies like Google, Meta, OpenAI, and Anthropic are buying up memory for their data centers, leading to a severe shortage in availability from major memory suppliers for consumer products like laptops, smartphones, and gaming consoles. Meanwhile, other device makers have had to pay a lot more for storage, resulting in higher significantly costs to consumers and suspended or delayed orders on some items. Notably, the price of Sony’s PlayStation 5 is jumping $100 on April 2, and the International Data Corporation (IDC) is forecasting a 13% drop in smartphone shipments this year due to the shortage, with smaller Android vendors expected to be hit hardest.
AI contracts are highly lucrative for chip manufacturers like Samsung, SK Hynix, and Micron, who control 93% of the global RAM market. Both Samsung and SK Hynix began focusing on the production of high bandwidth memory specifically for these contracts, with some reporting suggesting that around 40% of global DRAM was devoted specifically to OpenAI’s Stargate Project. Meanwhile, Micron announced it would end its consumer RAM production entirely in 2026.
Are RAM prices going back down?
As multiple outlets have noted, some RAM kits are down from their all-time highs, if only slightly: There are price drops of $30–$45 on memory that still costs $200–$400 compared to well under $100 less than a year ago. While the exact cause of the decline isn’t known, there are a few factors that theoretically could be at play. One is Google’s TurboQuant algorithm, which could reduce the memory demand for AI. Another is a series of shifts at OpenAI, which last week killed Sora, its AI video generation app, and earlier this month backed out of a data center expansion deal for the aforementioned Stargate Project.
What do you think so far?
Consumers shouldn’t get too excited just yet; analysts have predicted that the shortage could last through 2027 or longer. As for this latest shift, IDC’s Francisco Jeronimo told The Telegraph that while it’s too early to predict a sustained drop, the scaling back of AI contracts could alleviate memory prices for consumers down the line.
