Dell CEO Michael Dell has remarked that AI-related memory demand is likely to increase through 2028. The demand will be triggered due to the expanding AI infrastructure and increasing system complexity. In order to keep pace with the competitors, the hyperscale companies are increasing the investments, contributing to sustained pressure on supply.
As per the news source, the CEO said, “As memory per accelerator and system scale expand simultaneously in AI infrastructure, a structure is forming where total memory demand increases by approximately 625 times.” However, citing an issue with the supply part, he noted that the memory supply capacity may not be able to match such a high demand. He added, “While it takes years to expand memory supply, current demand for AI infrastructure is not slowing down.”
He also explained the logic behind the 625-fold increase. Dell explained the rationale behind the projected 625-fold surge. He noted that memory capacity per AI accelerator is expected to jump from 80GB in 2022 to around 2TB in the next few years. At the same time, the number of deployed accelerators is likely to increase 25 times. When combined, these two factors result in an overall 625 times expansion.
This rapid growth is set to significantly boost demand for RAM and related memory infrastructure. In parallel, GPUs will also see heightened demand, given their critical role in delivering the high-performance computing required for AI-driven data centres. As memory costs rise, this pressure is expected to cascade through the value chain—ultimately pushing up the prices of end-user electronics, leaving manufacturers with little option but to pass on the increased costs to consumers.
He noted, "It doesn't make sense for a knowledge worker earning $100,000 a year to use an outdated PC or an inefficient system.”
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