# DDR5 Prices Drop 20%: OpenAI Adjusts Memory Procurement Plans
Prices on 32GB DDR5 kits have fallen for the first time in a year: on Amazon, the price dropped from a peak of $490 to $370. This $100 decline is directly tied to OpenAI revising its investment plans, which had previously triggered a DRAM shortage and a 700% price surge according to TrendForce.
In October 2025, OpenAI signed preliminary agreements with Samsung and SK Hynix for up to 900,000 DRAM wafers monthly—that's about 40% of global production. The volume was sized for the $500 billion Stargate project. OpenAI's demand sparked a sharp rise in memory prices, rippling across the entire market.
OpenAI Scales Back Projects
Recent shifts in OpenAI's strategy have curbed demand. The company shut down the Sora video generation app, which was burning through $1 million a day. The $1 billion deal with Disney fell through. On top of that, in March, OpenAI and Oracle scrapped plans to expand the Stargate data center in Abilene from 1.2 GW to 2 GW over funding woes and demand uncertainty.
These moves signal a pivot from aggressive expansion to a more cautious stance. The memory market reacted with an instant price drop as investors recalibrate expectations for procurement volumes.
Current Contract Status and Outlook
Contracts with Samsung and SK Hynix for DRAM wafers haven't been canceled. The core agreement with Oracle for 4.5 GW of capacity is still in place. The price drop mirrors changing market sentiment: traders bet OpenAI won't take delivery on the full order volume.
OpenAI COO Brad Lightcap recently confirmed that the memory shortage remains a key bottleneck for the AI industry. New Samsung and SK Hynix fabs won't hit industrial-scale production until 2028 at the earliest. The current $100 drop is just a correction, not the start of a long-term decline.
For developers and data centers, this points to potential stabilization in hardware costs. That said, volatility lingers due to reliance on big players like OpenAI.
Key factors behind the price drop:
- Shutdown of Sora and cancellation of the Disney deal.
- Scrapping the Stargate expansion to 2 GW.
- Revised expectations for 900,000 DRAM wafers per month.
- Overall 700% price surge since October 2025.
Key Takeaways
- OpenAI is trimming spending on AI projects, easing pressure on the DRAM market.
- DDR5 prices fell $100 from their peak, but contracts with memory makers remain intact.
- The shortage is still a bottleneck; new fabs won't arrive until 2028.
- For IT pros, this is a chance to optimize server memory budgets.
- The market anticipates stabilization, but long-term trends are no sure thing.
— Editorial Team
No comments yet.