Memory hole

Markets: Canada’s main stock index had its best session yesterday since the conflict in Iran began as oil prices pulled back, soothing investors’ inflation fears. Newly released data showing that Canada’s inflation rate eased in February was also welcome news.

We’ve got a serious memory issue on our hands, and not the kind where we forget where we put our keys. 

Driving the news: A global shortage of memory chips, or RAM, has started to drive up costs of consumer electronics, particularly in the gaming sector. Kevin Jia, co-founder of Toronto-based Quoted Tech Computers, told The Peak that the RAM shortage has forced them to raise prices for their custom PCs that are popular with gamers. 

Why it’s happening: These RAM chips also happen to power the AI data centres that are currently being built in droves. Because of that demand, other businesses that rely on these chips often can’t secure enough of them (and are paying more for the ones they can get their hands on). 

Why it matters: These memory chips underpin almost every piece of technology that we have, from laptops and TVs to our cars. With demand from AI companies only growing, the parts used by everyday tech products will become increasingly scarce and, ultimately, more expensive. 

What’s next: The AI data center buildout hasn’t even hit its full stride yet — Alphabet alone is expected to spend US$185 billion on data centre construction this year. No company in history has ever spent that much on capital expenditures in a single year.—LA

Inflation eases in February. Canada’s annual inflation rate last month fell to 1.8%, below the Bank of Canada’s target, although economists warn that inflation will likely heat up again in March due to higher gas prices. There was also some good(ish) news at the grocery aisle: Food inflation dropped to 5.4% in February, down from 7.3% in January. (CTV News)

Bell is breaking ground on a $1.7 billion Saskatchewan data centre. The Canadian telecom is partnering with CoreWeave and Cerebras Systems to build what will be the country’s largest purpose-built AI data centre. The first phase of the facility, which will be just outside of Regina, is expected to be up and running by early next year. (The Canadian Press)

Ottawa invests $200 million in Nova Scotian space launch pad. The federal government signed a 10-year lease in Canso, N.S., for what will be Canada’s first domestic pad for launching satellites into space. Canada has had to rely solely on the U.S. to launch satellites, but the feds have earmarked $183 million in funding over the next three years to build up its own launch capabilities. (CBC News)

📡 What else is on our radar: 

What they’re saying: “This was a career first for me but, with technological advances, may well be something that litigators have to deal with much more frequently,” British lawyer Sarah Walker told Legal Futures. The career first in question was a recent incident where a claimant was secretly receiving answers through a pair of smart glasses while testifying.

Why it matters: As smart glasses start to catch on outside of hardcore gear nerds, more nefarious use cases are going to start cropping up — whether in a courtroom to gain an unfair advantage, in a classroom to cheat, or just out in the world where somebody might be scanning your face.

Canadian pension funds bet big on private equity in recent years — they might now be regretting it. 

Driving the news: Several of Canada’s top pension funds posted disappointing earnings or even reported losses in their private equity holdings last year, according to data compiled by the Financial Times.

Why it’s happening: After an extended boom period, PE has been floundering since 2022 when interest rates were hiked, tamping down deal appetite and fruitful IPOs. Now, PE firms are stuck with companies they bought but can’t flip, leading to dismal investor payouts. 

Why it matters: PE is a staple of Canadian pension funds, with over 20% of Canadian public sector pension money put into PE investments. The extended downturn in the sector is now prompting a strategy rethink. This includes offloading PE assets, reallocating investments to other sectors, or investing more through established buyout giants.   

Zoom out: Just yesterday, Bloomberg reported that the Canada Pension Plan Investment Board — the body that manages the national fund everyone contributes to — is looking to sell ~US$1.5 billion in Asian PE assets. PE accounted for more than a quarter of the fund’s assets in 2025.—QH

💵 25%. Share of Canadian venture capital deals last year in which U.S. investors participated, down 32% from 2024. Late-stage startup funding, which American investors have long dominated in Canada, fell to the lowest level in a decade.

Get the day going with a little gaming — play the mini-crossword, the daily sudoku, and Codebreaker! 

And then, give our new guessing game Who’s Who a try!