VRAM (Video RAM) is the GPU's own dedicated memory. It sits physically on the GPU board, connected to the GPU chip via a very fast bus. Think of it as the GPU's personal workspace — everything the GPU is actively working on must fit in VRAM.
This is separate from your system RAM (the compute.ram_gb in GIS). System RAM is connected to the CPU. VRAM is connected to the GPU. Data must be copied from system RAM to VRAM before the GPU can process it.
The critical difference is bandwidth. An H100's VRAM delivers 3,350 GB/s. System DDR5 RAM delivers ~50 GB/s. That's a 67× difference. The GPU needs this speed because it processes data so fast that slower memory would starve it.