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Intel CEO warns AI memory shortage and CPU supply crunch to persist until 2028

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Intel CEO Lip-Bu Tan has identified memory as the most pressing challenge facing his customers amid the ongoing AI boom. Memory chip prices have surged five to seven times, and suppliers have indicated the shortage will not ease until 2028. Speaking at Splunk's .conf26 conference in Denver, Tan also disclosed that Intel is currently able to fulfil only half of its customers' CPU orders. The shortfall is being driven by surging demand from AI agents, which is outpacing the company's current production capacity.

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