AI's big appetite is making car chips pricier
Business
The rush to build more AI data centers is pushing up prices for DRAM chips—by over 100%—and analysts warn this could put the brakes on car production.
Automakers are competing with buyers in the data-center segment for the same chips, and if things don't change fast, car output could take a hit as early as this spring.
Why it matters: Chip makers are picking AI over cars
Big chip companies like Samsung and SK Hynix are focusing on supplying AI data centers because it pays better, raising downside risks for automakers like Tesla and Rivian.
Industry experts say carmakers need to rethink their designs and shore up their supply chains now, so they don't get caught off guard like they did during the pandemic's chip shortage.