Archive · 18 Aug 2026
Sridhar Vembu Blames AI Boom for Rising Phone Prices
Sridhar Vembu says phones and laptops are becoming more expensive because companies are spending heavily on artificial intelligence.
AI data centers need many computer parts and large amounts of electricity.
They also need cooling systems, generators, processors and memory chips.
This greater demand can make those parts more expensive for everyone.
Vembu said memory prices rose by about 500 percent in one year.
He said this is making it harder for businesses to operate.
Zoho has not raised its prices yet, but Vembu said that may become difficult.
He also warned that the AI investment boom could later weaken, similar to the telecom bubble in the 1990s.
Zoho chief scientist Sridhar Vembu linked higher 2026 smartphone and laptop prices to the AI investment boom.
He said AI infrastructure demand is increasing costs for power systems, cooling equipment, memory chips, CPUs and GPUs.
Vembu cited a report saying memory prices had risen by around 500 percent over 12 months.
He said rising memory costs and AI token prices are making business operations harder, including for Zoho.
Vembu warned the AI investment boom could eventually unwind like the telecom bubble of the late 1990s.
- Who
- Zoho chief scientist and founder Sridhar Vembu.
- What
- Vembu attributed rising smartphone and laptop prices to the AI investment boom and warned that the boom could eventually unwind.
- When
- Vembu made the comments on Tuesday, August 18, 2026.
- Where
- The comments were posted on X; the article identifies the author’s location as Delhi, India.
- Why
- According to Vembu, AI investment is increasing demand and costs for memory chips, processors, power infrastructure, cooling systems and other components used in technology products.
- Speaker
- Sridhar Vembu, Zoho founder and chief scientist
- Affected products
- Smartphones and laptops
- Memory-price increase
- Around 500 percent over the previous 12 months, according to a cited report
- Cost pressures
- Memory chips, CPUs, GPUs, power generation, transformers, diesel generators and cooling systems
- Zoho pricing
- Zoho has held off on raising prices so far, though Vembu said doing so is becoming difficult to avoid
- Historical comparison
- Vembu compared the potential unwinding of the AI boom with the telecom bubble of the late 1990s
- Publication date
- August 18, 2026