Technology Prices Are Rising: What's the Connection to Artificial Intelligence

The rapid development of artificial intelligence has had an effect on the technology market. Demand for chips required for artificial intelligence systems has grown so significantly that devices intended for ordinary consumers are becoming more expensive.

Price increases have already affected companies such as Apple, Samsung, Microsoft, and Sony. Smartphones, tablets, computers, and gaming consoles have all become more expensive.

The main reason is a shortage of memory chips. To operate artificial intelligence models, large data centers are being built where large quantities of special memory, HBM, are used. Demand for this type of chip has increased precisely because of this.

As a result, manufacturers have fewer resources remaining for the type of memory used in conventional devices, for example in laptops, smartphones, and other everyday appliances. Consequently, production costs are rising, and this ultimately is reflected in prices.

The problem cannot be solved quickly. According to memory chip manufacturer Micron, building new factories takes years. Therefore, the market shortage will not disappear in the short term.

For years, consumers were accustomed to technology becoming cheaper over time. Now this trend has changed. Even some older models have become more expensive, including the Nintendo Switch released in 2017.

According to experts, if demand for memory chips remains this high, consumers will have to adjust to higher-priced technology.

Source: Yahoo Finance