DRAM, or dynamic random-access memory, is the active device memory that lets your PC, phone or game console juggle whatever you have open. AI data centers are soaking up so much of it that the shortage is raising prices on everyday electronics.
Sam Altman's RAM comments spark outrage
Collison asked why sky-high hardware prices hadn't lured new suppliers into the market, and Altman was blunt. "I think the invisible hand is failing right now," he said, according to the episode transcript.
From there, he went after a popular idea among AI enthusiasts — that open-source models running on a large number of personal computers, known as local inference, will ease the need for giant data centers. Altman sees it the other way around, arguing that when memory is this scarce, it belongs in cloud servers running at full tilt rather than spread across home machines that sit idle most of the day.
To be fair to Altman, he was answering a question about local AI, not gaming rigs, and a server shared by thousands of customers will keep its chips busier than your PC ever will. But people who run home-baked AI usually do it for reasons that have little to do with efficiency, like keeping their data private and skipping a monthly subscription. Altman's OpenAI is also one of the biggest buyers of the very memory he says is in short supply — critics argue AI companies like OpenAI are driving the shortage in the first place.
The backlash online was swift and widespread across social media, with some posts crossing into violent threats against Altman. Against that backdrop, Forbes senior contributor Paul Tassi's reaction on X was among the more restrained: "You know what I don't think I like this guy very much."
Why RAM prices keep climbing
Altman's comments come at a time when computer parts prices are in a pressure cooker — especially RAM. Conventional DRAM contract prices — what PC makers and other big buyers pay chipmakers before those costs trickle down to store shelves — jumped roughly 93% to 98% in the first quarter of 2026 alone, according to TrendForce. The research firm projected on Sept. 30 that increases would slow to 10% to 15% in the fourth quarter. It also warned that PC memory could shrink next year as more production shifts to servers. Other analysts expect the shortage to last at least through 2027.
At checkout, a 32GB kit of DDR5 now runs about $500, up from roughly $400 in early April, a Tom's Guide investigation showed — a markup they call a "cloud tax."
OpenAI is a major driver of that demand. In October 2025, Altman signed letters of intent with Samsung and SK Hynix to supply memory for Stargate, OpenAI's data center buildout, which SK Group said would put its projected demand at up to 900,000 DRAM wafers a month. That's as much as 40% of global output, based on TechInsights' 2025 production estimate.
