Title: The Memory Crisis: How AI’s Insatiable Appetite for Chips Is Driving Up Prices of Devices Worldwide The world has been grappling with an unprecedented memory crisis, thanks to the insatiable appetite of artificial intelligence (AI) for chips. This demand surge is causing a shortage in certain types of memory chips that are crucial for making sure devices like smartphones, computers and game consoles run smoothly. The imbalance between supply and demand has started affecting prices of various technology-powered products. The crisis can be traced back to the explosion in AI-related cloud computing and data centers which have led to a massive increase in demand for memory chips such as DRAM (dynamic random access memory) and RAM (random access memory). These chips are essential components that allow multiple tabs to remain open on browsers or enable smooth video playback without any lag. According to Avril Wu, a senior research vice president at TrendForce – a Taiwan-based consultancy tracking markets for computer components – the demand for RAM chips currently exceeds supply by 10%, and this gap is widening rapidly due to AI’s voracious appetite for memory resources. Consequently, manufacturers are forced to pay significantly more each month just to secure these vital chips. In fact, Wu revealed that during this quarter alone, they have been paying 50% more than the previous one for common DRAM types. If producers want their orders expedited, they must be prepared to shell out two or three times the usual price. The situation is expected to worsen in the coming months as Wu predicts a further 40% increase in DRAM prices by next quarter and doesn’t foresee any significant decrease until at least 2026. AI data centers require vast amounts of memory to support their cutting-edge GPUs (graphics processing units) which are responsible for training and operating AI models. As per Sanchit Vir Gogia, CEO of Greyhound Research – a tech advisory firm – “AI workloads are built around memory.” This means that as the adoption of AI technologies continues to grow across various industries, so too will the demand for these critical components. The implications of this crisis extend beyond just inflated prices; it also impacts innovation and progress in fields heavily reliant on advanced computing capabilities such as healthcare, finance, transportation, etc. The shortage could potentially slow down research efforts or limit access to sophisticated technologies due to prohibitive costs associated with acquiring the necessary hardware. In conclusion, while AI undoubtedly brings numerous benefits to our lives, its insatiable appetite for memory chips has created a significant challenge in terms of affordability and availability of essential technology devices worldwide. It’s crucial that manufacturers, policymakers, and consumers alike remain aware of this issue so they can make informed decisions about their purchases and investments moving forward.
Source: [Original Article](https://www.npr.org/2025/12/28/nx-s1-5656190/ai-chips-memory-prices-ram)
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