The xAI founder praised Micron's approach on X while taking aim at unnamed rivals he called 'extortionate'
Elon Musk has opinions about a lot of things. On October 13, 2026, one of them was the price of computer memory.
In a post on X, Musk described Micron Technology’s pricing approach as ‘reasonable’ . He also took a swipe at unnamed competitors, labeling their practices ‘extortionate.’
Memory chips are in short supply, and AI data centers are consuming them faster than factories can produce them.
Musk’s comments followed an upbeat JPMorgan report that highlighted Micron’s large contract backlog. His core argument was about relationships. Treating customers fairly during a crunch, he suggested, is how a supplier earns loyalty that outlasts the crunch.
Musk isn’t a neutral observer here. His xAI facilities, Colossus and Colossus 2, together carry approximately 1 GW of computing power. Those clusters run on NVIDIA GPUs that depend on Micron memory, so Musk is effectively praising one of his own key suppliers.
Micron is a major producer of DRAM and high-bandwidth memory, or HBM. DRAM is the short-term working memory inside computers. HBM is a stacked, faster version built to sit right next to AI processors and feed them data without bottlenecks.
The company has locked in 26 long-term supply agreements. Together, those deals cover more than 35% of Micron’s revenue through 2030.
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Its remaining performance obligations sit at approximately $150 billion. Customers have also put up $32 billion in cash commitments.
As of Q2 2026, Samsung held 39% of the global DRAM and HBM market. SK Hynix held 25%, and Micron held 23%.
Musk didn’t name the rivals he called ‘extortionate.’ Given the market structure, the list of plausible candidates is short.
The DRAM squeeze is projected to last until 2028, driven largely by demand from AI infrastructure.
A public endorsement from Musk plus a supportive JPMorgan note sounds like a recipe for a rally. Micron shares instead fell nearly 4%.
The drop was attributed to broader market issues rather than anything company-specific. Those included concerns about supply chains tied to China.
Micron appears to be betting that long-term contracts and moderate pricing will produce steadier results than squeezing customers during a shortage. The 26 agreements and the roughly $150 billion in remaining obligations suggest buyers are willing to commit to that arrangement. Contracts that run through 2030 reduce Micron’s exposure to sudden swings in demand.
The China supply chain concerns that hit the stock have little to do with Micron’s pricing philosophy and a lot to do with forces outside its control.