Nvidia Hikes AI Server Chip Prices by Over 15%
Nvidia's AI server prices are set to rise by over 15% due to increasing chip costs, according to a recent report from Bloomberg.
The price hike will apply to systems shipped early next year, including those equipped with Nvidia's flagship Vera Rubin and Grace Blackwell processors. The increase in prices is expected to further complicate the industry's massive AI data centre build-out, which is already facing delays, labour shortages, tighter capital markets, and local resistance.
Nvidia dominates the chip market and boasts a gross margin of about 75%, with its AI accelerators commanding far higher prices due to relentless demand and a lack of credible alternatives. Contract manufacturers building servers for major data centre operators such as Microsoft, Alphabet's Google, and Oracle have informed customers of the impending price hikes.