When we talk about the cost of AI infrastructure, the focus is usually on Nvidia and GPUs ' but memory is an increasingly important part of the picture. As hyperscalers prepare to build out billions of dollars' worth of new data centers, the price for DRAM chips has jumped roughly 7x in the last year. At the same time, there's a growing discipline in orchestrating all that memory to make sure the right data gets to the right agent at the right time. The companies that master it will be able to make the same queries with fewer tokens, which can be the difference between folding and staying in business. Semiconductor analyst Doug O'Laughlin has an interesting look at the importance of memory chips on his Substack, where he talks with Val Bercovici, chief AI officer at Weka. They're both semiconductor guys, so the focus is more on the chips than the broader architecture; the implications for AI software are pretty significant too. The tell is if we go to Anthropic's prompt caching...
learn more
