OpenAI CEO Sam Altman has argued that keeping large amounts of RAM in personal computers is an inefficient use of limited resources, suggesting that memory could be better utilized in cloud data centers.

Speaking on a recent episode of the Cheeky Pint podcast with Stripe co-founder John Collison, Altman discussed the growing demand for computer memory as artificial intelligence companies continue expanding their infrastructure.

The conversation turned to local AI inference, which allows users to run AI models directly on their own computers rather than relying on cloud-based services.

Altman questioned whether the increasing availability of open-source AI models would significantly reduce the need for data centers, arguing that distributing scarce memory across individual devices could be less efficient than concentrating computing resources in the cloud.

“From a global allocation perspective, actually, it’s quite terrible to have everybody have a bunch of the world’s limited supply of DRAM sitting in their own computer, and being used maybe 5% of the time. Like, you want maximum utilization in the cloud if you’re trying to deal with this very supply-constrained environment. And somehow many people’s intuition is the opposite of that.”

The comments come amid a worldwide memory shortage fueled by surging demand from artificial intelligence companies and data center operators. As manufacturers prioritize high-performance memory for AI infrastructure, supplies of conventional DRAM used in personal computers and other consumer electronics have become increasingly constrained.

According to market research firm TrendForce, conventional DRAM contract prices are expected to increase another 10% to 15% in the fourth quarter of 2026, with supply shortages expected to continue into 2027.

The shortage has already caused significant disruptions worldwide. Reuters previously reported that average DRAM inventory levels among suppliers fell to just two to four weeks in October 2025, compared with 13 to 17 weeks in late 2024.

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