Episode #1378: How the AI boom is creating a memory chip shortage that’s driving up costs for automakers, Carvana and Jimmie Johnson investing in future technicians and engineers, and why consumers are using AI search more than ever, even as their trust in it starts to fade.


Show Notes with links:

• As automakers push toward software-defined vehicles, they're colliding with a new competitor: Big Tech. The same memory chips powering AI are now essential in modern vehicles, and tech companies are buying them at almost any price.

  • DRAM memory prices jumped roughly 450% between September 2025 and January 2026 as AI demand exploded.

  • These chips are critical for ADAS, over-the-air updates, infotainment, and autonomous driving features consumers increasingly expect.

  • The cost impact is real: Honda cited a $295 million hit, GM added $500 million to inflation guidance, and Ford pointed to DRAM as part of $1 billion in higher commodity costs.

  • With major suppliers prioritizing data centers and limited new capacity coming online, analysts expect shortages and elevated prices to continue through 2027.

  • “It is a structural change. Buyers who were previously maybe 10 percent, 15 percent of the market are now half of the market.”” said Kearney partner Kushal Fernandes.

  
  

• As the industry continues searching for future technicians and engineers, Carvana and NASCAR legend Jimmie Johnson are putting resources directly into school programs designed to build that talent pipeline.

  • Carvana and the Jimmie Johnson Foundation launched Driving Brighter Futures, a grant program supporting K-12 automotive and engineering career-tech education programs.

  • Public schools can apply for funding to purchase the resources they need most, including tools, equipment, and training vehicles.

  • The program aims to strengthen the workforce pipeline by helping students explore careers in automotive technology and engineering earlier.

  • Nominations are open through August 28, with schools across the U.S. eligible to participate.

  • “The industry needs these students, and these students deserve the opportunity,” said Jimmie Johnson.

  
  

• AI is becoming a bigger part of how consumers discover products and brands, but confidence in those tools appears to be slipping. The technology may be winning adoption, but it hasn’t won trust.

  • Seven in 10 consumers say their use of AI for product search increased over the past year, and only 4% say they’ve never used AI search tools.

  • Despite growing usage, just 54% say AI is more helpful than traditional search, down sharply from 82% a year ago.

  • Trust is becoming a challenge: 40% say heavy AI use by a favorite brand would decrease their trust, double last year's result, and roughly 9 in 10 respondents want AI-generated videos, images, audio, and written content clearly labeled.

  • When it comes to product recommendations, consumers still trust Google first (39%), with Reddit (15%) narrowly beating AI tools (14%) for second place.