Memory prices are soaring worldwide: These are the reasons

RAM prices have been rising rapidly for months. Retailers report shortages, and analysts warn of a prolonged crisis. The reasons lie in an unusual combination of technological demand, strategic decisions by manufacturers, and massive preorders from major AI companies. In the meantime, OpenAI in particular is suspected of further tightening the market through large-volume purchases – though there is no solid evidence to support this.

The global expansion of data centers for generative AI is driving historically high demand for DRAM. Models like GPT require enormous amounts of High Bandwidth Memory (HBM) and server DRAM. Manufacturers such as Samsung, SK hynix, and Micron are responding by shifting production capacity toward more profitable HBM lines. As a result, conventional DDR5 memory for PCs and notebooks is becoming less of a priority. Industry analysts report that DRAM prices have more than doubled compared to the previous year. TrendForce expects further price increases this quarter as demand continues to outstrip supply.

Limited capacity and long expansion cycles

The shortage is further intensified by structural factors. New semiconductor fabs take years to come online, while existing plants are already running at high utilization. Micron and other manufacturers have announced plans to focus more heavily on enterprise memory and invest fewer resources in the consumer market. This leads to rising retail prices and delays for PC manufacturers, who in some cases receive only limited quantities.

Is OpenAI buying up the memory market?

OpenAI is currently receiving significant attention. As part of its infrastructure plans, the company has entered into long-term supply agreements with Samsung and SK hynix. Samsung has stated that OpenAI could eventually require up to 900,000 DRAM wafers per month. Analyses suggest this would represent a substantial share of global capacity and could influence future availability. Media reports and insider sources claim that OpenAI is not only purchasing for its own needs but is indirectly putting pressure on competitors by securing large volumes. Some even allege that employees are buying up memory in retail stores. However, there is currently no independent evidence for these claims. Neither manufacturers nor regulators have confirmed such practices.

Market mechanisms intensify the shortage

Beyond the AI boom and large individual customers, speculative ordering is adding further distortions. Many cloud providers secure capacity through multiple overlapping orders to ensure preferential delivery during shortages. Retailers report daily price fluctuations, while smaller market participants often struggle to secure long-term contracts and are forced onto expensive spot markets. Intentional price increases by manufacturers further contribute to the trend, as they leverage strong demand to boost margins and prioritize high-end products.

Rising prices could also affect the IoT sector

The ongoing memory shortage is likely to impact the IoT sector as well: While many sensors and embedded devices rely on inexpensive DRAM or flash, they indirectly compete for production capacity with higher-value memory products. When manufacturers shift production toward profitable HBM and server DRAM lines, standard components become more expensive or harder to obtain. This could force IoT device makers to reduce output, delay product launches, or fall back on older memory technologies or simplified hardware designs—affecting performance, security, and long-term updateability of connected devices.

Conclusion

The global memory crisis is the result of overlapping developments. The AI boom acts as an accelerator, while production capacity cannot keep pace. OpenAI plays a significant role as a major customer, but the accusation of intentionally “buying out the market” remains unproven. What is clear, however, is that as long as demand for AI compute power continues to rise and new fabs come online too slowly, memory prices will remain high—with tangible consequences for industry, consumers, and digital infrastructure worldwide.

Summary (tl;dr)

• RAM prices are rising sharply worldwide, driven by soaring AI industry demand.
• Manufacturers are shifting capacity toward more profitable HBM and server memory lines.
• OpenAI is a major buyer with significant market impact, though intentional market depletion is unproven.
• Speculative orders and price increases by manufacturers further intensify shortages.
• The IoT sector is also at risk due to higher costs and reduced availability of basic memory components.