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Sam Altman's PC RAM comments: memory in home computers is a bad use of supply
OpenAI's CEO says RAM belongs in data centers, while shortage forecasts run to 2030 and prices for laptops, phones and consoles rise.
What Altman said about RAM
From now until 2029, OpenAI owns 40% of the world's supply of DRAM [1]. Its CEO, Sam Altman, has now said it is terrible to have RAM in personal PCs instead of data centers [2]. That matters to anyone buying a laptop, phone or other device right now, because the billions chipmakers are willing to lay out is why that tech is getting more expensive [2].
Altman made the remarks during his appearance on the Cheeky Pint podcast [2]. The interview took place over beers with the YouTube channel Cheeky Pint, where he called local inference, and people having DRAM in home computers, quite terrible [3]. The quoted remarks occur at the 29-minute mark [3].
His argument for the cloud
Altman said that many people want local inference and assume the problem is solved because open-source models will let them run models on their own computers [2]. His objection is about allocation. From a global allocation perspective, he said, it is quite terrible for everyone to have a share of the world's limited DRAM supply sitting in their own computer, being used five percent of the time [2].
He said that maximum utilization in the cloud is needed when dealing with a very supply-constrained environment [2]. He added that because the world will be limited in silicon capacity, everyone has a shared interest [4].
On memory prices, Altman said that if costs do not fall he will be very sad, and that for them to fall supply must go way up [1].
Who holds the memory
OpenAI's primary business is in closed-source models that run in data centers, though it does have some open-source models [3]. The company is valued at $852 billion [1].
Memory companies Samsung and SK Hynix have long-term deals with cloud service operators and projects such as OpenAI's Stargate that have reserved much of the world's RAM output over the next few years [2]. Earlier this month, Altman argued that the world should accept some bad things happening for the benefits of this technology [4].
Shortage timelines and market damage
Samsung expects the RAM shortage to last until at least 2028 [2]. SK Hynix says memory shortages will last through 2030 [2].
The AI boom has made individual components, especially memory and storage, practically unaffordable [4]. PC makers say they are already fully booked through the end of 2030 amid a massive circuit board shortage [4].
Intel shares plunged almost 30 percent on a Friday, the worst stock collapse in 52 years [4]. Analysts said the wipeout could be due to a massive slowdown in the PC market [4].
What this means for buyers
If you are shopping for a laptop, phone or other device, the prices you see reflect the billions chipmakers are willing to lay out for chips [2]. A PS5 currently costs $650 [1]. Sony plans to end Blu-ray support in 2027 and produce only fully digital PS5s [1].
If you plan to buy a PC, note that PC makers say they are already fully booked through the end of 2030 [4]. Watch the timelines: Samsung expects the shortage to last until at least 2028 [2], and SK Hynix says it will last through 2030 [2].
Sources
- OpenAI Billionaire: PCs Are 'Terrible' When Data Centers Need More Memory — polygon.com
- Sam Altman says it’s better for RAM to be in a data center than on your desk — The Verge
- OpenAI CEO says it's 'quite terrible' for your PC to have RAM — Sam Altman says data centers offer better utilization — tomshardware.com
- Sam Altman Absolutely Hates the Idea of People Running Their Own AI Models at Home, Argues They Shouldn’t Own Computers — futurism.com
Written from the sources above and checked twice before publishing. How we work · Report an error
