Nvidia reportedly warns biggest customers of 15% price hikes on AI servers — memory costs continue to soar
The increases will take effect on Grace Blackwell and Vera Rubin systems shipping early next year.
Nvidia has reportedly warned its largest customers that they will face a 15% price hike on AI servers containing its AI chips, particularly for Grace Blackwell and Vera Rubin systems set to ship early next year. This increase is a result of the ongoing "RAMageddon" in the DRAM market, with prices soaring at record rates this year due to suppliers reallocating capacity toward HBM and server products.
The rise in memory costs has been exacerbated by the supply crunch that Nvidia's demand helped create, as memory production consumes roughly four times the wafer area of equivalent conventional DRAM. The reported hikes, which will impact companies such as Microsoft, Google, and Oracle, could add hundreds of thousands of dollars per rack to the cost of rack-scale systems that sell for several million dollars each.
Despite Nvidia's high gross margins, the company intends to pass on the cost inflation rather than absorb it, which it can afford to do.
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