[Npovview]

I have an alternative take.

If hyperscalers are using more RAM, and that RAM is not available for consumers, it means all the heavy stuff will happen in the cloud. Why would we want both the hyperscalers and consumers to have RAM simultaneously? Consumers would want more RAM to run local models but then hyperscalers capacity will be unused.

[elorant]

Because RAM isn’t in PCs only. It’s in tablets, phones, laptops, DIY computers like the Raspberry, mini PCs, watches, smart TVs, game consoles, cars, routers, cameras, all smart appliances from refrigerators to washing machines, fitness trackers, printers etc. Cloud services are irrelevant to most of these categories.

[Npovview]

A chip that produces refrigerator ram is also capable of producing hbm3 ? Don't they require retooling? Won't the same problems surface as required to establish new fabs?

[elorant]

They do require retooling and that's what's happening here. RAM manufacturers decided that it's way more lucrative to focus on HMB production than DDR 4/5 production. Capacity is the issue and that's capped unless you build new fabs but they won't do it because there's no guarantee that the demand will keep the same in the next years.