Nvidia customers notified about AI-related price hikes above 15%: Report

Nvidia is notifying some of its largest customers that prices for servers containing its artificial intelligence chips could increase by over 15 percent, according to a report by Bloomberg News on August 22. The rising costs are attributed to soaring prices of memory chips, according to people familiar with the matter. The price hikes will take effect for systems shipped early next year, affecting systems that include Nvidia's flagship Vera Rubin and Grace Blackwell chips.

The extent of the increases will depend on the specific chip generation and memory configurations, according to the report. However, Reuters could not immediately verify the report and Nvidia did not respond to a request for comment outside regular business hours. Companies that build servers under contract for large data center operators like Microsoft, Alphabet's Google, and Oracle have recently informed their customers of the upcoming price increases.

Nvidia, whose chips are central to much of the AI infrastructure buildout, is scheduled to report its second-quarter results on August 26. The company has become a symbol for the broader AI ecosystem, encompassing chipmakers and firms financing the rapid expansion of data center capacity.