Elon Musk and Tim Cook warn of global chip crisis worsening; memory shortage hammering profits, derailing plans, inflating prices from laptops to cars.
Host
How is huge memory demand increase showing up in corporate outlooks and company models?
Host
Neil Kaplan
Latest AI chips use 6-10x more memory than earlier H100 chips, creating huge consumption demand.
Neil Kaplan
Takes 3-5 years to build new memory fabrication plants, creating bottleneck.
Neil Kaplan
Samsung, world's largest memory chip maker, will also be negatively impacted despite being a producer because they make smartphones, PCs, TVs - win on supply side but lose on product side.
Neil Kaplan
Crisis going to get worse; Hynix says worse before better in terms of supply meeting demand.
AI disruption mentions in management calls skyrocketing; is this causing choppy markets over last 10 days?
Host
Neil Kaplan
Yes, we've seen nervousness because we don't know how it will impact business models.
Neil Kaplan
Example: CBRE said could use AI to reduce research costs by 25%, but stock got hit hard because investors worried external models could do it more efficiently for small price.
Neil Kaplan
Unknown risks and pace of innovation means we're struggling to keep up.