2 weeks ago

AI Boom Drives Memory Costs Higher Across Technology

Artificial intelligence systems need a lot of computer memory to work.

Companies are building more AI data centers, which increases demand for memory chips.

Some memory products have become much more expensive.

One reported 128GB memory kit rose from about $329 to $3,399, but this does not mean every memory product increased by that amount.

Zoho founder Sridhar Vembu says these costs could make it harder for companies to keep prices unchanged.

Businesses may have to absorb the costs, charge customers more, or redesign their software.

Vembu also thinks programmers should build software that uses less memory.

This could change how some software and AI systems are designed.

Key facts

Reported maximum increase: Some memory prices rose by as much as 500% over the past year.
Example product: A 128GB DDR5-6400 kit was reported at about $3,399, compared with a previous low of $329.
DRAM forecast: TrendForce forecasts conventional DRAM contract prices to rise 13–18% quarter-on-quarter in Q3 2026.
NAND Flash forecast: NAND Flash prices are expected to increase 10–15% in Q3 2026.
Main demand driver: AI data centers require high-bandwidth memory and server-grade DRAM.
Zoho’s position: Zoho had avoided raising prices but says memory and AI token costs are making that increasingly difficult.
Proposed software response: Sridhar Vembu advocates memory-efficient programming languages and smarter compilers.

wionews.com · 2 weeks ago