Amidst all the cloudy news surrounding AI and layoffs in the gaming industry, a ray of sunshine seems to be peeking down as RAM prices take a dip after a long time. Although this has been met with mixed reactions on the internet, it almost sounds too good to be true.
This happened right after OpenAI announced that they are taking down its generative video tool, Sora AI, to focus more on its core AI tools. The internet read this as the first possible signs of an AI bubble burst.
But this sudden dip in prices does not completely mean we are over the OpenAI situation as some are interpreting it. Google’s new TurboQuant compression may also be partially responsible for some of this dip.
TurboQuant algorithm reduces the memory requirement for AI
There are multiple situations leading to this scenario right now. As much as people are against generative AI, they will have to hold back from early celebrations. This is because AI may be getting more and more dominant in our day-to-day lives.
This speculation comes after Google revealed its TurboQuant algorithm earlier this month. In layman’s terms, it significantly helps downsize the memory needs for AI modules, up to six times than normal.
Thus, it reduces the requirement for memory chips in AI around the world. Although Google has only released a research document so far on the matter, the dip in price could be attributed to the effects of the news already working to shape the market.
OpenAI failed to meet its commitments
But that cannot be the only reason for this quick turnaround. As we discussed earlier, OpenAI is a sinking ship right now with major companies backing out of funding. Cracks already seem to be forming after the Sora AI shutdown announcements.
Add to all that, OpenAI had caused the whole situation around memory chip shortages late last year. They signed a deal with major suppliers like Samsung, seeking to control almost 40% of the memory chip supply in the world.
This has now backfired, as OpenAI and ORCL reportedly failed to meet the commitments and backed out of the agreement this year in March. The domino effect seems to have already started in the US-based stores.
According to a Wccftech article, Amazon US saw a sharp drop in certain memory modules. VENGEANCE DDR5 RAMs saw a significant drop from $490 to $379.99, which may not be much, but it is still a great start.
Although the effect is yet to reflect in international markets, so a lot of users online have expressed their skepticism. Few are on a spree of premature celebrations, because it has been a while since there has been any good news for the gamers; it was slowly turning into a luxury.
