Dan Gallagher

AI has created this demand for this very specialized type of memory that works within the AI systems.

And so a lot of the production capacity is going towards this very high value memory.

And what that does is that leaves less production capacity for the memory chips that go in your phone or in your PC.

the short of it is you're probably going to see prices go up for a lot of these types of products and you also might see products where there's just less memory in them because you're going to see manufacturers make some design tweaks because they can only get so much memory and so they might just push out more products that have less on more memory for that manufacturers are already paying higher prices and they're already seeing a hit to their profit margins on that

And there's only so much they can absorb.

If you take a manufacturer like Dell, like HP that make PCs, they can take some margin pressure, not a lot.

They need to pass those costs on.

They're really the only company that has what you might call a vertically integrated model here.

Having their own AI, their own cloud network, and even their own silicon kind of makes them a very unique business model in AI right now.

Google just has a lot of things going in its favor right now.

It's got its own internal AI that's doing well that Microsoft doesn't have because Microsoft still depends a lot on open AI for that element.

Google has actually been designing its own silicon, its own chips, a little bit like NVIDIA, which gives a competitive element there.

All these worries about the sustainability of AI and AI spending don't seem as serious for them.

So if a company like OpenAI struggles, that has major implications for Microsoft and NVIDIA and these other companies.

But OpenAI struggling is actually good for Google.

They're really the only company that has what you might call a vertically integrated model here.

Having their own AI, their own cloud network, and even their own silicon, it kind of makes them a very unique business model in AI right now.

Gemini 3 is getting a lot of rave reviews and it did well in these benchmark tests where people are talking about it seems to be actually better than what ChatGPD offers right now.

But Google also, because they have search, they can get their AI in front of so many people

Almost any time you do a Google search, you're probably going to get some AI results fed to you through Gemini.