Elon Musk asks, "Is the demand increasing by 20% a year?" as memory output grows 20% annually

Speaking on SpaceX’s earnings call, Elon Musk said memory chips are now the main bottleneck in the artificial-intelligence build-out. Musk, who leads Tesla and SpaceX, said both companies are investing billions in AI chips, memory, storage, and data-center infrastructure. He contrasted memory supply growth of roughly 20% a year with demand growth he put at around 200% or more, arguing that such an imbalance would push prices higher rather than lower. The remarks come amid rising memory prices and increased capital-spending forecasts from Alphabet, Amazon, and Meta, which have made investors worry that shortages could slow AI expansion. The article identifies memory makers Micron and SK Hynix as potentially well-positioned beneficiaries if Musk’s assessment holds.