Nvidia customers notified about AI-related price hikes above 15%, Bloomberg News reports
Memory shortages are driving the increase, and the size of the hike will vary by chip generation and configuration, Bloomberg reported.
- Bloomberg News reported Saturday that Nvidia plans to increase prices for servers containing its AI chips by more than 15% for some large customers, impacting systems with Vera Rubin and Grace Blackwell chips.
- Soaring costs of memory chips essential for Nvidia's GPUs and systems have prompted the price adjustment, which will vary based on specific chip generation and memory configurations.
- Companies that build servers under contract for large data center operators, including Microsoft, Alphabet Inc.'s Google, and Oracle, have recently informed their customers of the upcoming increases.
- Customers can expect the price increases to take effect on systems shipped next year, while Nvidia did not immediately respond to a request for comment outside regular business hours.
- Nvidia is set to report second-quarter results on August 26, positioning the chipmaker as a central proxy for the broader ecosystem spanning chip makers and data center operators.
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A seismic shift in the semiconductor market is expected as Nvidia, the world's largest AI chip company, has announced plans to raise the prices of its AI server systems by more than 15% starting next year. The key reason behind this price hike is the shortage and rising prices of memory semiconductors.
Good morning! The costs of AI are rising. Now Nvidia is announcing substantial price increases.
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