Musk, Cook Warn of Memory Chip Crisis as Demand From AI Grows

Tech titans Elon Musk and Tim Cook are sounding alarms over an escalating global memory chip shortage, warning of severe economic ripple effects across industries. The crisis is already disrupting supply chains, driving up costs for laptops, smartphones, cars, and data centers—with AI’s insatiable demand for high-bandwidth memory (HBM) chips worsening the strain. Corporate profits are shrinking as chip shortages force delays in product launches and infrastructure projects, with no immediate relief in sight due to limited manufacturing capacity. Analysts predict the crunch will intensify as AI adoption accelerates, outpacing semiconductor production despite billions in new fab investments. The shortage threatens to inflate consumer prices further, exacerbating global inflation pressures amid an already volatile tech market.