Elon Musk Endorses Micron Technology's AI Memory Pricing
Elon Musk praised Micron Technology for maintaining reasonable memory pricing during AI infrastructure bottlenecks, contrasting the company with other suppliers he called extortionate.
CEO of Tesla and SpaceX Elon Musk publicly endorsed Micron Technology on October 13, praising the company for its reasonable approach to memory pricing. Musk contrasted Micron's strategy with other suppliers, whom he described as extortionate, and stated that customers will not forget how suppliers treated them during the memory shortage.
This endorsement coincides with Micron's implementation of multiyear strategic customer agreements designed to mitigate the cyclical volatility of the semiconductor market. These agreements currently cover at least 35% of the company's projected revenue through 2030, representing $150 billion in remaining performance obligations.
While memory supply continues to be a critical bottleneck for AI development, Micron's shift toward long-term contracts aims to secure predictable business relationships with large enterprises and hyperscalers.
