OpenAI CEO Sam Altman said that keeping DRAM inside personal PCs is "quite terrible" from a global supply allocation perspective. His argument is that RAM installed in individual computers is only used about 5% of the time, so memory should be pooled in the cloud to maximize utilization. These remarks come as RAM prices continue to surge day after day.
Altman made these comments during an appearance on the podcast 'Cheeky Pint', which was released on the 29th, local time. During the interview, the conversation turned to the shortage of AI computing resources and rising memory prices.
The remark was made during a discussion about local AI. Altman noted that while many people believe running open-source models on their own computers will eliminate the need for data centers, the reality is actually the opposite. He stated that "it's quite terrible to have everybody have a bunch of the world's limited supply of DRAM sitting in their own computer and being used 5% of the time," adding that in today's supply-constrained environment, utilization should be maximized in the cloud.
He also pushed back against the market logic that rising memory prices will naturally increase supply and eventually drive prices down. When the host asked how things were going on the solutions front, Altman answered briefly, "Bad." The reason Altman cited lies in the memory industry's history. He explained that for a long time, DRAM was a business where companies invested $20 billion (approx. 28 trillion won) in facilities only to make $19 billion, cycling through booms and busts without ever being a good long-term business.
Now, however, manufacturers are set to generate around $100 billion (approx. 140 trillion won) a year in free cash flow. He added, however, that because memories of nearly going bankrupt from overbuilding factories remain, companies have no choice but to be conservative about expanding capacity. In reality, memory prices are climbing steeply, while memory makers are posting record earnings.
Of course, Altman does not view the current situation as ideal either. He stated that energy and chip prices must come down, and that it would be very sad if they do not. However, he emphasized that this requires a massive increase in supply, adding that OpenAI is preparing plans to design its own chips and data centers, as well as build data centers en masse using robotics.
As his remarks circulated, strong backlash erupted across online communities. Critics pointed out that the skyrocketing RAM prices are driven by AI data center demand in the first place, questioning whether Altman is telling consumers to give up their RAM and rent from the cloud instead. Counterarguments also noted that cars and kitchens sit unused for most of the day, and that many users rely on local AI due to privacy concerns and rate limits.
On the other hand, some argued that looking at the full conversation, Altman was not telling people to remove RAM from their personal PCs, but rather highlighting that the expectation of local models solving the memory shortage is a misconception.
