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Alphabet technologist identifies pricing divergence between DRAM and HBM as a supply chain concern
Sunday, February 8, 2026 at 03:25 PM
Alphabet's chief technologist highlighted concerns regarding memory pricing volatility, specifically noting the divergence between standard DRAM and high bandwidth memory (HBM) markets.
Context
Alphabet Chief Technologist for AI Infrastructure Amin Vahdat recently identified the pricing divergence between standard DRAM and High Bandwidth Memory (HBM) as a critical supply chain risk. Speaking in early February 2026, Vahdat noted that the "split" between these components has become a frequent concern for Google. As memory manufacturers like Samsung, SK Hynix, and Micron reallocate limited wafer capacity toward high-margin HBM for AI accelerators, the supply of conventional DRAM is tightening significantly.
This "capacity cannibalization" is driving a sharp price spike for commodity memory used in general-purpose servers. While HBM price growth remains relatively stable, traditional DRAM contract prices are forecast to surge by 55% to 60% in Q1 2026 alone. Analysts project that Samsung’s DRAM revenue per bit could rise 116% year-on-year. With supply constraints potentially lasting until 2028, Alphabet faces escalating infrastructure costs that could impact the long-term margins of its broader AI scaling efforts.
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