How is AI impacting memory chip prices?

AI's massive demand for memory, especially for data centers and graphics cards, is creating a shortage, driving up prices for memory chips.

When will the AI RAM crisis end?

While new production facilities are planned, they won't significantly impact supply until 2028. The crisis is expected to continue through 2027.

Will my smartphone or PC get more expensive due to AI?

Yes, the AI-driven memory shortage is expected to cause price increases for many consumer electronics, including phones and PCs.

Home / Technology / AI Gobbles RAM: Tech Prices Soar!

AI Gobbles RAM: Tech Prices Soar!

20 Jan

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Summary

Data centers will consume over 70% of high-end memory chips in 2026.
Memory prices may rise 40-50% by Q1 2026, after a 50% rise in late 2025.
Consumer tech prices could increase due to AI-driven memory demand.

The booming artificial intelligence sector is fueling a severe memory chip shortage, with data centers poised to consume over 70% of high-end memory chips in 2026. This AI-driven demand, particularly for powering large language models like ChatGPT and Gemini, is causing significant strain on supply chains. Memory prices have already surged by 50% in late 2025 and are projected to climb another 40-50% by the end of the first quarter of 2026.

The consequences extend beyond servers, impacting consumer electronics. Prices for devices such as PCs, smartphones, TVs, and even cars are expected to rise as manufacturers face increased costs for essential memory components. This situation is reminiscent of pandemic-related supply chain disruptions, with a "permanent reallocation" of supply favoring AI firms over other industries.

While memory chip manufacturers are accelerating new facility construction, these efforts will not alleviate the current crisis until 2028. Creative solutions, including the reclamation of used memory chips and potential AI innovations to reduce RAM dependency, are emerging. However, consumers may face elevated prices and limited availability for various tech products throughout 2027.