Svmuu News: Gavin Baker, founder and chief investment officer of Atreides Management, discussed the “bottleneck” in the AI race during his appearance on the latest episode of the All In podcast.
Gavin noted that DRAM has always been the most critical bottleneck. There is a group of people on social media who are very focused on this issue; they use Claude to search for and identify obscure Japanese materials companies. However, the only truly significant bottleneck is DRAM, because memory capacity and bandwidth form the foundation of all AI model performance.
The growth of companies like Changxin Memory Technology may offer Apple an alternative solution to its high-cost challenges; they will, to some extent, meet the market demand for consumer-grade DRAM. However, when it comes to the DRAM required for AI servers, only three companies—SK Hynix, Samsung, and Micron—are capable of producing it…By 2027, DRAM is expected to account for 30% to 40% of all capital expenditures in hyperscale data centers.