An AI memory shortage is looming. SoftBank and Intel want to get ahead of it

Saimemory, a subsidiary of the renowned investment firm SoftBank, has recently announced a strategic partnership with American semiconductor giant Intel Corp. This collaboration aims to propel the development and commercialization of cutting-edge memory technologies that are essential for meeting the increasing demands of artificial intelligence (AI) and high-performance computing. The initiative is named the 'Z-Angle Memory program,' or ZAM, and is set to produce prototypes by the end of the fiscal year on March 31, 2028, with commercialization expected in fiscal 2029, as detailed in a SoftBank press release. Following the announcement, shares of SoftBank surged by 3.13%, while Intel's stock experienced a 5% increase in overnight trading on Robinhood. Founded in December 2024, Saimemory intends to leverage Intel's extensive expertise in memory technology, particularly insights gained from the U.S. Department of Energy's Advanced Memory Technology program. This initiative has been pivotal in enhancing the core technologies necessary for next-generation memory solutions. Dr. Joshua Fryman, an Intel Fellow and CTO of Intel Government Technologies, emphasized the inadequacy of standard memory architectures in fulfilling the needs of AI applications. He highlighted that Intel has pioneered a new memory architecture and assembly method that boosts Dynamic Random-Access Memory (DRAM) performance while simultaneously reducing power consumption and costs. This positions the technology for widespread adoption over the next decade. This partnership emerges as the demand for memory utilized in AI applications has skyrocketed, far exceeding current supply levels and causing significant shortages throughout the memory supply chain. Additionally, the focus on energy efficiency within the ZAM program addresses the growing concerns regarding the substantial energy consumption associated with AI computing. Reports indicate that Fujitsu, a Japanese multinational IT services and equipment company, is also involved in this ambitious project, which was first highlighted by Nikkei Asia last year.