The AI frenzy is driving a memory chip supply crisis

Reuters reports that an acute global shortage of memory chips is emerging as tech giants race to build AI data centers, diverting capacity into high-bandwidth memory for GPUs and away from traditional DRAM and flash used in consumer devices. Major AI players including Microsoft, Google, ByteDance, OpenAI, Amazon, Meta, Alibaba and Tencent are scrambling to secure supply from Samsung, SK Hynix and Micron, with SK Hynix warning the shortfall could last through late 2027, potentially delaying AI infrastructure projects and adding inflationary pressure worldwide.