AI Memory Crunch Puts Google, Microsoft Executives’ Jobs at Risk

In the midst of a global RAM and HBM shortage brought on by AI demand, executives at Microsoft and Google are reportedly fired as they rush to secure vital memory supplies from Samsung and SK Hynix.

Industry analysts claim that Microsoft and Google are threatening to fire their procurement executives if they don't get essential memory chip supplies from Samsung and SK Hynix.

The severe worldwide memory shortage, which has caused RAM prices to skyrocket and left AI businesses scurrying for components, is reflected in the extreme strain. Purchasing executives from big tech companies are reportedly "practically stationed" in South Korea, frantically negotiating with the nation's semiconductor giants, according to reports noted by Citrini Research analyst Jukan (@jukan05 on Twitter). The stakes are quite high: Korean industry sources claim that Google has already sacked officials in charge of procurement after they were unable to obtain more memory supplies.

The company's AI accelerator chip demand surpassed projections, resulting in a shortage, which led to the reported firings at Google. In response to Google's request for extra high-bandwidth memory (HBM) volume, SK Hynix and Micron said that obtaining more supply was "impossible." The procurement staff was later fired by Google's management, who blamed them for generating supply chain risks and neglecting to negotiate long-term agreements beforehand.

In one instance, Microsoft executives allegedly stormed out of a meeting with SK Hynix after being informed that the business could not provide under the terms MS desires, demonstrating the extreme desperation that has reached new heights. According to industry sources, large IT businesses simply demand all the volume they can afford, regardless of price, by placing open-ended orders with memory manufacturers.

The enormous demand for memory components required to power AI companies' data centers is the cause of the worldwide RAM shortage.

The supply issue has become dire because only three companies in the world – SK Hynix, Samsung Electronics, and Micron – are able to produce high-performance HBM and advanced DRAM. According to reports, Samsung and SK Hynix have sold out of all of their HBM and DRAM production capacity for the upcoming year. To better manage Asian supply chains, tech corporations are increasingly radically reorganizing their hiring procedures. Traditional Silicon Valley or Seattle-based memory procurement managers are increasingly being hired for roles in Korea, Taiwan, and Singapore, putting professionals with engineering expertise on the ground to handle volume purchases and technical coordination at the same time. The International Data Corporation predicts that the memory shortage will "persist well into 2027," marking the end of an era of inexpensive, plentiful memory and storage.