Dell CEO Predicts AI Accelerator Memory Demand to Hit 625x 2023 Levels by 2028, Supply Challenges Ahead

Michael Dell, founder of Dell Technologies, recently predicted that total memory demand for AI accelerators will reach 625 times the 2023 level by 2028. This growth comes from two 25x factors: per accelerator memory will rise from 80GB (H100 GPU in 2023) to 2TB, and the total number of accelerators needed will also increase 25x.

However, supply side faces challenges: building a new DRAM fab takes 4 years, original manufacturers paused expansion during the 2023 storage cycle low; now giants remain cautious. TSMC also didn't increase capital expenditure in 2023-2024. Supply-demand imbalance leads to supply constraints.

Dell can ease supply chain pressure with its wide product line and long-term partnerships. Michael Dell believes the AI industry is in a high-growth phase, enterprises will increase AI investment, and Dell's stable demand and deployment capabilities give it an edge in the AI server sector.