Nvidia's AI chips are consuming memory at an unprecedented pace: Nvidia's, NVDA, most recent Rubin chip now requires 288GB of RAM. This is +800% more than the memory of a high-end PC, and +2,300% more than a high-end smartphone. By comparison, the H100, launched 4 years ago, needed 80GB of RAM, or 72% less. In other words, each new generation of Nvidia AI chips requires significantly more memory than the last, putting enormous strain on global supply. Furthermore, AI giants like Alphabet, GOOGL, and OpenAI are locking up large portions of the global memory chip supply by purchasing millions of Nvidia AI chips. As a result, average spot prices for 16GB DDR4 RAM are up +2,352% YoY to a record $76.90, while 8GB DDR4 prices are up +1,873% YoY, to an all-time high of $28.90. The global memory chip shortage is out of control.(The Kobeissi Letter)