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Processors have internal memory-- In the form of the 3 L's.

L1 Cache - Usually a very small amount, like 32-128kb, this is the fastest cache, and used to store very small strings of data for immediate use.

L2 Cache - The heavy lifter of a processor-- Usually 1-2MB per core. This cache stores more complex values and helps with prioritization of workloads.

L3 Cache - Relatively new in the processing world, L3 caches are larger, slower banks of memory in the upwards of 12-18MB used for basically anything not covered by the first 2 caches.

If you mean internal memory as in RAM, a processor will not work without RAM.

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