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AI chip cost breakdown shows memory share reaches 63 percent

Memory accounted for as much as 63 percent of AI chip component costs in the fourth quarter of 2025, an estimate showed. Epoch AI examined AI chips designed by Nvidia, AMD, Google and Amazon and estimated the memory share rose from 52 percent in the first quarter of 2024. In dollar terms, memory-related spending climbed to about $32 billion in 2025 from about $12 billion in 2024. The figures are estimates with stated uncertainty ranges.

AI & Enterprise

Starbucks ditches AI inventory system as AI-driven layoffs spread

Starbucks has withdrawn a computer vision-based automated inventory management system from more than 11,000 stores after it miscounted stock and worsened shortages, Forbes reported. Staff returned to manual work. Forbes said companies replacing workers with AI are also removing AI that fails to replace people. It cited recent layoffs at Meta, Intuit and others, while companies also say they lack talent able to use AI tools in day-to-day work.

AI & Enterprise

Race to control AI agent data layer intensifies among leading firms

The enterprise software landscape is rapidly reshaping around AI agents, intensifying competition among vendors seeking to lead early. A battle over data access is emerging as more companies block outside products from connecting to their platforms, with Microsoft joining the trend. Databricks was blocked from linking its platform data to Microsoft Power BI during tests of a new feature. Rivals are pushing standards for semantic layers, while SAP restricts external agent access through its API policy.