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AI datacenters are buying large amounts of ram from the companies making these things and are willing to pay whatever price needed to get more. This has driven up prices absurdly.
As for consumer electronics and prebuilts yeah it'll raise their prives. Samsung can't even buy ram from samsung for their phones. Atleast they had to re-negotiate a much higher price per chip
How does that work when a company can’t buy from itself?
The AI industry drives up demand and production capacity takes long to increase.
Eventually it will influence consumer electronics. The more similar the ram is the faster it will.
To put in context how much they are driving up demand: OpenAI just bought 40% of the global wafer production from two of the three major RAM manufacturers, Samsung and SK Hynix. ~~SK Hynix~~ Micron (best known for their Crucial brand) decided to drop out of the consumer market entirely.
Of course the other AI companies are going to try to nail down supply as well. If they get similar deals, 10 € per GB of DDR5 will look cheap.
This will increase the cost of computers, phones, and laptops, both directly and indirectly (e.g. GPUs will also become more expensive; VRAM doesn't grow on trees). We're already at a point where Samsung Semiconductors reportedly refused to sell RAM to Samsung Electronics. I fear we might enter into an age of 2000 € basic office PCs and 1000 € mid-tier phones if the AI bubble won't pop first. Even when it does, the repercussions will be felt for some time.
Crucial is/was a Micron brand.
That's what happens when you get distracted while posting. Thanks for the correction.
Eventually it will influence consumer electronics.
It already has and in a big way. I saw one comment on a Jeff Geerling video saying they had bought 96G of DDR5 RAM a year ago for $205 and that it was well over $600 now.
I just looked online for 64GB of DDR5 and it was $900...
Yes, all of that, PLUS the impacts of this very related news which will make the impact even worse: