A series of events caused RAM prices to explode (xcancel.com)

Recent events have led to a dramatic surge in RAM prices, primarily driven by a significant supply lock-up and increased demand from the AI sector. In October, Sam Altman acquired 40% of the global DRAM supply, which has heightened competition for high-bandwidth memory (HBM) essential for AI chips like GPUs and TPUs. Major players like Google faced challenges in securing HBM, with a Google executive reportedly fired after failing to obtain necessary supplies. Microsoft's attempts to negotiate with SK Hynix also ended unsuccessfully, highlighting the intense market pressures where RAM prices have skyrocketed to three times their previous levels in just a year. The implications of this price surge are profound for the AI/ML community, as it directly affects the cost of building AI infrastructure. With a single 256GB RAM stick now costing significantly more than high-end GPUs, hobbyists and developers are feeling the pinch, potentially leading to a slowdown in AI experimentation and innovation. However, there is a glimmer of hope as Chinese memory companies like CXMT ramp up DDR5 production and Huawei aims to establish its own HBM line, which could alleviate some pressure and provide alternative solutions in an incredibly tight market.