The AI Boom Is Making Memory Chips Much More Expensive, Impacting Laptop And Smartphone Prices

The price increases are beginning to affect consumer electronics manufacturers as companies including Meta, Microsoft and Google parent Alphabet commit to long-term agreements that secure memory supplies for their expanding AI data centers. (Credit: Getty Images)

Artificial intelligence spending is driving an unprecedented surge in memory chip prices, increasing costs for smartphones, laptops and cloud computing as major technology companies secure supplies years in advance.

Prices paid by U.S. producers for electronic components and accessories jumped 27.6% in June from a year earlier, the largest increase in government records dating back to 1966, according to data from the Bureau of Labor Statistics.