RAM Prices Spike Due to AI Demand

We have been seeing prices for computer memory (RAM) spike over the last few months. While there are always many factors in price fluctuations in such a globalized supply chain, this time it’s nearly all due to a huge increase in demand by AI datacenters. Big tech companies like OpenAI are inking multi-billion dollar deals to secure future chip production, which reduces availability for the rest of us. According to one report, OpenAI’s massive Stargate data center project will absorb 40% of the global memory production capacity. The Stargate project will be about a half-dozen huge AI data centers across the US. The first data center is currently under construction in Abeline where it will ultimately create 1,700 full-time jobs. Much closer to home, another of the AI data centers is planned for an undisclosed location in Milam County immediately to the east of us here in Williamson County. What does all this mean for you? In the short term, expect to pay higher prices for new computers. We’re seeing increases of 15-25% for identical models just six months ago. It’s unclear when prices will stabilize, but analysts expect it will be 6-12 months before new production capacity will come online to appease demand.