Limitless Podcast The Semiconductor Squeeze is Quickly Becoming The Biggest AI Crisis
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Jan 6, 2026 The AI industry faces an urgent memory crisis as graphics card prices soar from $500 to $4,000. A staggering $100 billion memory supply gap threatens AI performance and consumer electronics. Key players like NVIDIA and Apple are grappling with fierce competition and rising costs. The consolidation among major memory suppliers like Samsung and Micron adds pressure, while innovations in chip technology could shape the future. Insights into industry dynamics reveal how these challenges could impact consumers in 2026.
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AI Drives An Immediate Memory Crisis
- AI demand has created an urgent memory crisis that is inflating GPU prices dramatically.
- The industry faces a roughly $100 billion DRAM/HBM supply gap that must be filled quickly.
Gamer Experiences With Soaring RAM Prices
- Josh Kale recounts building custom PCs and watching RAM prices spike from hundreds to thousands of dollars.
- He gives a concrete example: 64GB sticks rose from $350 to $2,500 in months.
HBM Is The AI Memory Multiplier
- AI uses specialized memory (HBM) that stacks DRAM to deliver extreme bandwidth and capacity.
- HBM consumes far more DRAM per unit, worsening shortages for all devices that need DRAM.