Nvidia customers face AI server price hikes of more than 15% as memory costs soar
Nvidia is able to charge tens of thousands of dollars per chip because supply still cannot meet runaway demand
Nvidia is raising the prices of AI servers containing its artificial intelligence chips by over 15 percent in many cases, according to people familiar with the matter. The price increases will begin for systems shipped early in 2027 and affect systems with flagship Vera Rubin and Grace Blackwell chips, among others. The hike is due to soaring memory chip costs, which have given manufacturers of Samsung Electronics, SK Hynix, and Micron Technology significant influence in the technology sector.
Nvidia's accelerator processors are crucial for AI software, and their effectiveness hinges on the amount of dynamic random access memory (DRAM) they are paired with. While the South Korean memory chip manufacturers have increased production, they have not yet matched the surging demand, leading to massive price surges in these components.
Major tech companies like Apple and Qualcomm have also faced similar challenges due to chip shortages. The price hikes will complicate the massive AI data centre build-out plans, which are already facing difficulties due to project delays, labor shortages, tightening capital markets, and community resistance.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
