Intel CEO Lip-Bu Tan says the AI boom has a 2028 problem, and his customers feel it
Intel CEO Lip-Bu Tan warns that a severe shortage of high-bandwidth memory (HBM) is delaying AI infrastructure projects across the industry. He suggests that relief for these supply chain constraints is unlikely before 2028 as memory manufacturers prioritize AI-specific production.
Why it matters
The bottleneck in memory production threatens to slow the global rollout of AI technologies and data center expansion.
Intel CEO Lip-Bu Tan says memory is now the biggest problem for companies racing to build AI infrastructure, and it is only getting worse. Speaking at Splunk's .conf26 conference in Denver last week, Tan said memory prices have already climbed five to seven times over earlier levels, and that limited production is forcing businesses to delay projects.Tan has been making this point all year. At an Intel event earlier, he put it plainly: "I think in terms of the AI, the biggest challenge, I think, for a lot of my customer is memory." AI, he added, is "sucking" up much of the memory the computer industry has. He has also said the memory makers he speaks with regularly have given him a clear timeline.
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