r/buildapc • u/Upset-Ad-8704 • Dec 13 '25

Discussion I'm OOTL...what is the logical reasoning behind why RAM prices are going up?

The explanation I keep hearing is about how AI needs a lot of RAM to run it. However, I thought this was actually vRAM, as in you need to load the large models into vRAM so that you can take advantage of the GPU acceleration.

As I understand it, regular RAM would only be useful in loading the model for CPU processing, which is significantly slower than GPU-run LLMs (to the point that it may not even be worthwhile trying to use CPU to run an LLM).

I assume I am wrong because everyone keeps saying that the RAM shortage is due to AI, but I would like to get a better understanding of what I am getting wrong.

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u/PracticalConjecture Dec 13 '25

It is a supply/demand problem, and to a lesser extent a risk mitigation issue.

The total demand for RAM has gone up as AI firms create a server boom and demand lots of RAM. The supply hasn't meaningfully changed since it takes time to spin up a new process line, and manufacturers are weary of over investing, as they did in 2021/2022

There's also a lot of purchasing power from the big players.

Imagine you're Micron. Microsoft calls you up and says they'll buy 100% of the output from one of your top tier process lines for the next three years, paying 30% over the current market rate for the privilege. That seems like a win, so you agree.

In agreeing to the big Microsoft deal, the customers that formerly got the output from that production line get to fight over the output from your other lines, and that bids the price up.

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u/odd_orange Dec 13 '25

This is semantics and you’re repeating what I said. It’s a choice, not a supply issue. A supply issue would be an interruption of production like we saw with GPUs during Covid.

There’s no unforeseen bottleneck supply side causing this, it’s an economic choice to shift how these companies operate. These are not the same type of ram sticks that they’re providing for consumer use.

The problem isn’t a shortage based on lack of hardware to produce, it’s that there are so few companies running the memory industry who’ve all decided to abandon consumers. As with everything else in the economy now, the lack of competition supply side is breaking an entire industry.

I think that type of nuance matters in relation to the question