A debate over where memory belongs
Speaking on the YouTube channel "Cheeky Pint and Stripe," Altman criticized the worldwide allocation of memory rather than gaming PCs specifically. During a discussion of the AI industry's limited computing capacity, he argued that keeping scarce DRAM in individual computers with potentially low utilization was inefficient.
With supplies severely constrained, Altman said, the available memory would be better used at high utilization in the cloud. He also questioned whether market forces were distributing it effectively.
Altman favors cloud-based AI models for the future of computing. In his view, shortages of consumer products could also leave more memory available for AI companies and their data centers. But that argument implicitly treats local AI as the main use for RAM in private computers, even though memory is a basic component of many consumer electronics devices.
OpenAI's demand and the wider supply gap
OpenAI has a direct stake in memory availability: serving large AI models depends on hyperscalers building and equipping data centers. In October 2025, the company signed letters of intent with Samsung and SK Hynix for memory supplies for its Stargate data-center buildout, according to Moneywise/Yahoo Finance and CSIS.
SK Group put OpenAI's projected demand at up to 900,000 DRAM wafers a month. Measured against TechInsights' estimate of 2025 production, that would represent as much as 40% of global DRAM output.
The pressure extends beyond OpenAI. A September 2026 CSIS report projects that data centers will consume about 70% of the memory devices produced worldwide in 2026. Industry forecasts cited in the report indicate that manufacturers will supply only about 60% of global demand that year, despite several major expansion projects.
Production is concentrated among a few suppliers. According to CSIS, TrendForce estimates that Micron, Samsung and SK Hynix together generated 90.5% of worldwide DRAM sales in the fourth quarter of 2025.
Higher prices reach PCs and consoles
The AI-amplified shortage is already affecting gaming hardware. IGN reports that used PS5 Pro consoles are selling for as much as $1,399. In Germany, Sony increased the console's official price by 100 euros in March because of the RAM shortage.
PC memory has also become more expensive. A Tom's Guide investigation cited by Moneywise/Yahoo Finance put the late-October 2026 price of a 32GB DDR5 kit at about $500, compared with roughly $400 in early April.
The increases span different memory markets. A source cited in CSIS's September 2026 report puts the rise in DDR4 prices since early 2025 at 700% to 800%. DDR4 is widely used in PCs, servers and consumer electronics. J.P. Morgan Global Research separately estimates that DRAM prices will have climbed more than 400% between the beginning of 2024 and the end of 2026.
TrendForce recorded a roughly 93% to 98% jump in conventional DRAM contract prices during the first quarter of 2026 alone. Its Sept. 30 forecast called for a slower increase of 10% to 15% in the fourth quarter.
Why supply may remain tight
Asked why high prices had not attracted new memory suppliers, Altman pointed to the industry's history of poor returns, saying a DRAM producer "would invest $20 billion of CapEx to make $19 billion." The most recent downturn came in 2023, when Samsung reduced memory production after warning of an approximately 96% decline in first-quarter operating profit, according to Reuters.
J.P. Morgan Global Research says the shortage could take years to unwind. TrendForce has also warned that PC memory supplies could shrink in 2027 as manufacturers shift more production toward servers, leaving little prospect of near-term relief for consumers.
