AI boom will cause computer chip shortages until 2031

The financial bank Citi has released a warning: the world is about to run short on memory chips — the tiny components that store and process information in computers. The shortage is expected to get worse, not better, through 2031.

Why? Artificial intelligence systems are becoming more powerful and more common. AI models (the software that learns and makes decisions) need enormous amounts of memory chips to work properly. Think of it like this: if AI is a brain, memory chips are like the brain's notebook — the bigger and more complex the thinking, the more notebook space you need. The demand is growing so fast that manufacturers simply can't keep up with production.

Two types of chips are in particular short supply: high-bandwidth memory (HBM) — which is designed to move data very quickly — and DRAM (the kind of memory your computer uses to run programs). Without enough of these chips, tech companies will struggle to build the AI systems and devices we increasingly rely on. This could mean slower innovation, higher prices, or delayed product launches.

What does this mean for you? It might take longer for new AI features to reach your phone or computer. It could also push up the cost of tech products. For companies building AI systems, it's a serious headache that won't go away anytime soon.