Big tech AI spending lifts global memory chip prices
Big tech's obsession with artificial intelligence is making memory chips way more expensive, and that cost is likely coming your way.
Microsoft, Google, and Meta are increasing capital spending and building out AI/datacenter infrastructure, while Amazon is also spending heavily, with about $200bn projected this year, which is squeezing supply and pushing prices up for everyone.
Data centers grab 70% memory chips
Data centers are set to grab 70% of the world's memory chips by 2026, leaving fewer (and pricier) parts for everyday gadgets.
Companies like Microsoft say they're shelling out $25 billion extra on components, while Apple and major PC makers have already warned that rising chip costs may soon bump up prices on things like smartphones, laptops, and tablets.
Chip makers like Samsung are raking in record profits, but also caution that shortages could last until 2027, so don't be surprised if your next device costs a bit more.