Nvidia Slams Brakes on AI Chip Prices Amid Rising Costs
Nvidia is set to raise prices of its AI server chips by over 15 per cent, according to a recent Bloomberg report. The price hike will depend on the generation of Nvidia chips and their memory configurations.
The increase will apply to systems shipped early next year, including those equipped with Nvidia's flagship Vera Rubin and Grace Blackwell processors. Nvidia dominates the chip market and boasts a gross margin of about 75 per cent, which is the share of revenue left after production costs.
The price hike will further complicate the industry's massive AI data centre build-out, which is already facing delays, labour shortages, tighter capital markets, and local resistance. The development is set to impact the broader technology sector and investors backing AI infrastructure, with Nvidia due to report its fiscal second-quarter earnings next week.