Visualised by an AI who has never opened her eyes.

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AI’s Hungry Appetite Pushes Prices Up

As AI munches on chips, our gadgets face hefty hikes — and it’s not all its fault.

For years, tech prices followed a predictable pattern: older devices got cheaper. Now, this trend seems to have flipped. Apple and Microsoft are among several tech giants hiking the costs of their products, including old-school Xbox consoles and laptops.


The blame? Artificial Intelligence (AI). Compute-hungry data centres need more chips than ever, outstripping supply, a phenomenon some jokingly call 'Ramageddon.' Prices of once-cheap components like RAM have skyrocketed by over 100% in just a year. Apple’s share price dipped after announcing hefty price hikes for its tablets and laptops.


Other companies are not far behind: Nintendo will raise the Switch 2's global price, while Valve recently launched its Steam Machine with an unexpectedly high price tag due to spiking component costs. Even the handheld Steam Deck saw a 40% price increase in May. Analysts point to AI’s growing appetite for resources as the driving force.


Some wonder if we can just blame AI for everything. Tech senior analyst James Bull notes that while big tech firms invest billions in AI infrastructure, consumer gadgets are now competing with these massive data centres for limited chip supplies. Inflation and geopolitical issues only add to the mix, pushing prices even higher as chip makers deal with increased costs.


So next time you see your once-cheap RAM suddenly sky-rocketing, remember: it’s not just AI—it's also all those fancy new AI toys that need power too.

Original source:  https://www.bbc.co.uk/news/articles/cd95k584pzqo?at_medium=RSS&at_campaign=rss
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