Why do I get an "Out of Memory" error in MATLAB 7.14(R2012a) despite having sufficient memory?

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When I perform the following operation:
>> rand(5000)./rand(5000);
I get an "Out of memory" error. I should not be getting this error as I have 128GB RAM. Why do I get this error?

Accepted Answer

MathWorks Support Team
MathWorks Support Team on 11 Jun 2013
Execute the following command to find out if the MATLAB version installed is 32 bit or 64 bit:
>> mexext
It was found that the MATLAB 7.14(R2012a) installed was 32-bit version. A 32-bit version MATLAB can access upto a maximum of 2GB-3GB of memory, even if the system is 64-bit. This is explained in the following documentation page:
<http://www.mathworks.com/help/releases/R2012a/techdoc/matlab_prog/brh72ex-49.html>
In order to overcome this error, install 64-bit version of MATLAB 7.14(R2012a). The 64 bit MATLAB running on a 64 bit OS can access approximately 8TBytes of memory.

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