Sam Altman says scarce RAM is better used in data centers

OpenAI CEO Sam Altman argued that the world’s limited supply of DRAM should be used in data centers rather than sitting in personal computers that are idle much of the time. He made the comments during an appearance on the Cheeky Pint podcast, while discussing supply chain shortages.

Altman said many people want to run AI models locally and assume open-source models will reduce the need for data centers. But he called it “quite terrible” for people to hold DRAM in their computers when it is “being used five percent of the time.” He said cloud systems should maximize utilization in a supply-constrained environment, adding that many people’s intuition is the opposite.

The Verge notes that memory makers Samsung and SK Hynix have long-term deals with cloud service operators and projects such as OpenAI’s Stargate, reserving much of the world’s RAM output over the next few years. The article links the large sums being spent on chips to higher prices for laptops, phones, and other technology, but gives no specific price figures.