Elon Musk: AI Memory Demand Growing Over 200% Annually, Supply Lagging

firstadopter · x · 2026-08-05

Elon Musk stated on the SpaceX earnings call that the current limiting factor for hardware is memory. While memory output is increasing by around 20% per year—fantastically fast for a mature industry—it pales in comparison to the demand, which is growing by 200% or more annually. Musk argued that basic economics suggests this massive supply-demand imbalance will drive memory prices up, not down.

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