Nvidia Customers Face 15%+ Price Hikes on Server Costs Due to Memory Chip Shortages

Nvidia customers are facing significant price hikes for their servers due to rising memory chip costs. According to Bloomberg News, prices for systems equipped with Nvidia's AI chips will increase by more than 15% in early 2024.

The price increases will vary depending on the Nvidia chip generation and memory configuration. Companies that build servers under contract for major data center operators like Google and Amazon have notified customers of the upcoming price hikes.

Nvidia's AI accelerator processors rely heavily on DRAM, which has become scarce due to a surge in demand for AI infrastructure. Memory chipmakers Micron and SK Hynix have gained significant leverage in the market, with Nvidia having no choice but to pass on the increased costs to its customers.