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When AI Eats the Internet: The Legal Fight Over the Global RAM Crunch

 min read

8

Shourya Singh

30/7/26, 12:53 pm

Introduction


The present-day expansion of artificial intelligence technologies requires more computing resources than at any previous point throughout human existence. The legal discussions about artificial intelligence mainly examine three areas: algorithm accountability,     data protection, and ethical governance, yet they reveal a deeper issue that exists because computational infrastructure has become both centralized and limited. Advanced artificial intelligence systems need high-performance processors and high-bandwidth memory modules as their main hardware requirements. The international demand for these components leads to shortages, which result in higher prices and market disruptions while creating significant challenges that impact competitive regulation.


Recent industry reports show that artificial intelligence systems now use more than half of all global high-performance computing resources. Current estimates show that artificial intelligence workloads occupy approximately 70 percent of advanced computational memory capacity, which leaves less than half of the available memory for general computing use. The market now experiences extreme price fluctuations because of the rapid memory component market concentration. The consumer hardware market currently shows a 64-gigabyte memory module price increase, which has risen from $99 to almost $500 because of the intense demand created by artificial intelligence. The process creates major problems that affect how individuals enter markets, which technologies they can access, and which organizations will obtain control of vital infrastructure components.


This increased computational resource concentration results in a new type of market control that stops technological progress and makes it impossible for other businesses to enter the market. The article investigates the new phenomenon of RAM shortage through antitrust law because AI infrastructure consolidation creates a fundamental barrier against competition in the digital market. 


Artificial intelligence systems need high-capacity memory systems that      allow them to handle large data sets and develop their models through extensive processing. Modern machine-learning architectures require massive datasets, which need multiple training sessions that require thousands of processors to run simultaneously. The systems need to keep all their training data in memory, which results in the need for high-bandwidth RAM modules and advanced semiconductor parts.


The rapid expansion of artificial intelligence research has created a situation where research resources must increase to meet rising demands in this area. Data centres that provide AI support now function at massive operations, which require them to use large amounts of electricity and water for their cooling needs. Current estimates show that large data centres in multiple areas together use millions of litters of water every day to keep their computer systems at safe operating temperatures. The environmental effects of artificial intelligence show that the technology's physical and infrastructural aspects exist outside the capabilities of algorithmic methods.


Businesses require computing resources as essential operational resources because their infrastructure systems are becoming more essential to their business operations. The current method of accessing computational memory and processing power functions as the equivalent of      historical railway and telecommunications systems, which controlled access to economic opportunities during previous economic periods. When infrastructure systems become restricted to specific geographic areas, the competition between companies will experience major disruptions.


RAM Scarcity and Structural Barriers to Market Entry


Multiple analysts indicate that current computer memory needs have created a situation where RAM products are unavailable for purchase. The global memory manufacturing sector faces production limitations because most companies allocate their production capacity to develop artificial intelligence technology. The decreasing availability of resources will create competition between hardware manufacturers, software developers, and independent researchers.


  This trend creates difficulties for new market entrants because it establishes systemic entry barriers. Advanced artificial intelligence systems require developers to gain access to adequate computing power. New companies in the AI-driven market will struggle to compete because they lack high-performance memory modules and extensive computing systems.


The existing regulatory system establishes rules that prevent market leaders from abusing their power while providing competitors with equal access to vital assets. The Competition Act of 2002, which governs competition in India, prohibits businesses from using their dominance to restrict market competition through anti-competitive behaviour. The statute defines anti-competitive conduct through practices that include restricting production and preventing market entry, and imposing unjust business terms.


The Act remains relevant because it governs AI systems despite being written before large-scale AI systems were created. Regulators should investigate whether companies that control digital market resources through their computational power restrict their competitors' ability to operate.


     The Essential Facilities Doctrine and Computational Infrastructure


The essential facilities doctrine has served as a solution to problems that competition law encounters since it became established as a legal principle. The principle states that companies that own essential market access infrastructure must provide their rivals with equitable and impartial access rights. The doctrine has been applied in sectors such as telecommunications networks, electricity grids, and transportation infrastructure.


The fundamental economic activities that rely on specific resources create market distortion because their existence prevents access to these crucial resources. The developing field of artificial intelligence requires its computational infrastructure to function as a fundamental resource. Advanced artificial intelligence systems require organizations to possess extensive computing capabilities for both their development and implementation processes.


The private technology companies which control essential computing resources used by artificial intelligence systems present two distinct types of competitive threats to their competitors. Companies that possess advanced computational resources create better models which lead to improved system efficiency and increased user data collection which produces strong network effects within artificial intelligence markets. The existing market players maintain their technological advantage by using their power to block new businesses from accessing essential computing resources. The Organisation for Economic Co-operation and Development has observed that AI infrastructure markets show high market concentration together with operational economies of scale which create significant entry barriers that reduce competition in digital markets.


The market structure of digital markets can be manipulated by a small number of entities when they acquire control over all computational memory and processing power resources. The RAM shortage, therefore, raises questions about whether computational infrastructure should be treated as a strategic resource subject to competition oversight.


The current computational systems function as essential components that drive today's economic growth just as industrial systems operated during previous economic periods. Businesses need three basic components which consist of advanced computing processors and cloud infrastructure and modern memory technology solutions to enter artificial intelligence markets successfully. Established technology corporations possess sufficient financial resources to establish semiconductor production networks and safeguard cloud services and acquire high-speed memory technology which smaller companies cannot obtain. The market leaders maintain total control over essential artificial intelligence research resources which they use to prevent all new innovations and market entry attempts.

The View of The Judiciary

The Indian competition law system establishes its antitrust regulations to safeguard competitive market conditions rather than using these regulations to punish specific businesses. The judiciary has established that competition law needs to adapt to new economic concentration methods, which disrupt market access and innovation while harming consumer welfare, because markets develop through advancing technologies. The artificial intelligence ecosystem needs its two core components of computational infrastructure and artificial intelligence systems to undergo evaluation according to the existing framework of Indian antitrust laws. 

The Supreme Court established, through its examination of the Competition Act 2002, that the law functions to maintain market stability by preventing companies from using their dominant positions to disrupt market operations. Section 4 of the Act prohibits dominant enterprises from using their power to restrict production or block market entry or create unfair conditions that result in market distortion. The market development process needs these principles because companies establish market control through their ownership of essential infrastructure elements.

The Supreme Court established a legal standard through its decision in Competition Commission of India v. Bharti Airtel Ltd., which demonstrated that technology markets need their own regulations because these markets show different competitive patterns than other markets. The Court ruled that competition law must safeguard existing market systems while preventing companies from using technological progress to create unfair market advantages. The Court established telecommunications market regulations, which the Court used to create digital infrastructure market regulations that depend on essential technological resources for their competitive advantage.

The Supreme Court established in Excel Crop Care Ltd. v. Competition Commission of India that market competition requires active protection through measures that prevent organizations from using disruptive practices to control market prices and block market entry. The Court required competition law to evaluate business activities through their overall economic effects instead of studying the formal contracts that companies create with one another. The current approach demonstrates that businesses can achieve market dominance by using indirect methods, which involve their power to control supply chains and their capacity to restrict access to essential resources.

The judicial decisions create foundational principles that experts need to assess artificial intelligence systems that require infrastructure for their development projects. The developers need advanced memory systems together with extensive processing power in order to execute their project work, which involves building advanced artificial intelligence systems. The AI-driven markets restrict market entry because they create resource shortages when companies allocate resources inefficiently or when resources remain too concentrated in specific areas. The organizations that manage access to computational resources use their power to control access as a means to establish market dominance according to competition law standards. 

The current stage of artificial intelligence development needs open market systems, which current judicial frameworks have established since their earlier testing period. The courts have confirmed that competition law serves two main purposes, which are to protect market competition and to allow new inventions to progress beyond established market leaders. The sector requires authorities to regulate technological infrastructure distribution because its current state creates obstacles that prevent businesses from entering markets that depend on fundamental assets. 

The Supreme Court uses its competition law framework to show how businesses develop market power through their technological advancements over time. Businesses established traditional industrial monopolies by using their control over required physical resources which included transportation networks and communication systems and energy distribution facilities. Digital businesses today use their computational infrastructure in the same way that traditional organizations used to depend on physical infrastructure. Businesses require advanced memory systems, high-speed processing units and powerful data processing systems in order to create and execute their future technology developments.

The present RAM shortage situation shows that increasing demand for computing power generates new economic value from technological resources, which have become essential economic assets. Organizations that manage their supply chains through resource acquisition problems will obtain complete control over all technology markets. 


The competition law needs its fundamental rules for assessing new infrastructure power to undergo evaluation, through which flexible interpretation should be employed. The AI infrastructure problem needs solutions that will stop technological progress from creating new restrictions that make it hard for people to access technological resources. The Indian judiciary's ongoing commitment to maintaining market competition establishes a vital framework that helps mitigate these emerging dangers. Artificial intelligence transforms digital markets while competition law gains importance because it protects market entry and fosters innovation and prevents companies from establishing technological dominance, which endangers economic regulatory objectives.


The Future of Competition Law in the Age of AI Infrastructure


The development of artificial intelligence technology stands as the most significant technological achievement that humanity has attained since the beginning of the twenty-first century. The economic systems that support AI development require physical assets such as semiconductors and memory systems, and data centres for their operation. The network infrastructure will improve its resource management capabilities because it will gain better control over limited resource availability.


The AI economy will develop into a competitive market system or a collection of dominant technological monopolies, depending on how competition authorities enforce their regulations. The assessment process for regulators requires them to identify new market power types that emerge from two primary factors: pricing methods and control over computing resources.


The RAM shortage phenomenon shows how growing technological requirements create hardware components that businesses consider essential for their economic success. Digital markets will see access to computational infrastructure emerge as a crucial requirement, which will Force competition authorities to assess the applicability of antitrust rules within the AI economy.


Conclusion


The international demand for artificial intelligence research needs computer memory systems and research facilities to be developed at their highest possible capacity. The digital economy infrastructure exists in two fundamental states because its basic structure has undergone fundamental transformations which resulted from rising hardware costs and the industry experienced RAM shortages and computing facilities became more interconnected. Scientists need public access to computing resources because these resources represent the essential requirement for research work, which enables the advancement of scientific knowledge and technological innovation.


The competition law system needs complete solutions because the upcoming legal changes will create major transformation challenges. Digital monopolies require market protection, which is specifically designed to protect their operations from unauthorized access to computing resources. The development of artificial intelligence will create its most significant legal problems for contemporary society because it will establish new methods of managing essential AI infrastructure.


About the Author

Shourya Singh is a student at National Law University Jodhpur.

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