Elon Musk: AI Memory Demand Could Grow 200% Annually vs 20% Supply

Elon Musk highlights a severe imbalance between 20% annual memory supply growth and potential 200% demand, suggesting rising prices due to fundamental economic principles.

Woofun AI reports that during a recent earnings call, Elon Musk addressed the supply-demand dynamics of the computing market. He stated that memory capacity is expanding by approximately 20% annually, a significant rate for a mature industry.

However, Musk argued that demand is growing at roughly 200% per year or higher. He concluded that this disparity, where demand outpaces supply, should lead to price increases rather than decreases based on basic economic principles.