Nvidia customers notified about AI-related price hikes above 15pct

Nvidia has informed some of its largest customers that prices for servers featuring its AI chips will increase by more than 15 per cent in many instances, according to Bloomberg News. The price hikes will take effect on systems shipped early next year and will affect systems including those with the flagship Vera Rubin and Grace Blackwell chips, the report stated, citing sources familiar with the matter.

The extent of the increases will depend on Nvidia's chip generation and memory configurations, the sources said. Reuters was unable to independently confirm the report, and Nvidia has not yet commented on the matter. Companies that build servers on contract for major data center operators, such as Microsoft, Alphabet's Google, and Oracle, have recently notified their customers of the upcoming price increases, the report added.

Nvidia's chips play a crucial role in the AI infrastructure buildout, and the company is scheduled to release its second-quarter results on August 26. Nvidia has become a benchmark for the broader AI ecosystem encompassing chip manufacturers and entities financing the swift expansion of data center capacity.