The primary supply problem in AI is a layer below the GPU, concerning the manufacturing of chips packaged with the necessary memory.

An AI vendor contract is now effectively a supply contract, tied into hyperscalers due to their scale of spending and heavy rationing.

Every word generated by an AI model comes out of a physical factory system involving chips, memory, packaging, networking, power, cooling, land, data center construction, and operations talent.

TSMC's CoWoS technology connects compute and memory at the bandwidth AI workloads need to operate.

The AI5 design features a main processor in the middle and 12 memory dies (six on each side) packaged together on a substrate.