OpenAI CEO Sam Altman believes keeping large amounts of RAM in personal computers is an inefficient use of the world’s limited memory supply, arguing that data centers can put those resources to better use. His comments come as growing demand for AI infrastructure continues to push up memory prices, affecting everything from laptops to smartphones.
Speaking with Stripe co-founder John Collison on the Cheeky Pint podcast, published October 29, Altman discussed the global DRAM shortage and questioned whether running AI models locally makes economic sense when memory supplies remain constrained.
Sam Altman Wants More RAM Utilized in Data Centers
During the interview, Altman argued that running open-source AI models on personal computers does not necessarily solve the industry’s growing demand for computing resources.
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He described consumers keeping large amounts of DRAM in machines that see limited use as “quite terrible” from a global resource allocation perspective, adding that cloud infrastructure offers better utilization.
“But 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.”
Altman estimated that personal computers use their memory only 5% of the time, although he provided no supporting data for that figure. He believes concentrating memory in cloud infrastructure allows companies to serve more users with shared hardware.
AI Demand Is Already Making Consumer Devices More Expensive
The comments arrive during a major memory shortage, with AI companies purchasing enormous quantities of DRAM and high-bandwidth memory for their infrastructure.
Manufacturers are increasingly prioritizing lucrative data center contracts, leaving consumer electronics companies facing higher component costs. Apple has already raised prices on several Macs and iPads as memory prices increase.
However, local processing offers advantages that centralized AI infrastructure cannot always provide, including offline access, lower network latency, and greater control over sensitive information.
Apple, for example, continues to develop on-device AI processing alongside its Private Cloud Compute infrastructure.
Altman’s argument also raises questions about consumer choice, particularly as OpenAI and other AI companies invest heavily in the same data centers competing for limited memory supplies.
For users who need RAM for gaming, software development, video editing, or local AI models, keeping that memory inside their computers remains essential regardless of how efficiently cloud providers can utilize their hardware.
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