Rising Cost of IT Hardware – AI
With the evolution and increase in AI demand comes with it the demand for computer hardware and upgrades such as memory, processors, and hard drives. Manufacturers such as Dell, Lenovo, and HP are showing price increases between 15% to 25%.
Pricing has gone up, and lead times have gone up, because of the new manufacturing shortage. The question is, what’s causing this major shift in availability and price of technology products?
The answer is, it’s a double-edged sword in the world of AI. As the increased demand and thirst for people to utilize AI and companies to implement it, the AI providers are in turn building new and larger data centers to increase the productivity of their AI infrastructures. To compete in this AI-infused market, tech companies have effectively bought all of the memory, RAM, video cards, and processors on the market. This surge comparable to what was seen as crypto-mining became the surge in the market many years ago.
Is this price increase only going to affect tech upgrades and computers? Well, if you’ve been paying attention to our recent Tech Corners, the world of “Smart” continues to grow, which in turn asks for more “AI” and technology-integrated products. For example, TVs, washing machines, refrigerators, air conditioning, garage door openers, etc.
The point of this Tech Corner is not to cause a scare or urge you to go out and stock up on technology products, but more to educate on why costs have risen and what’s going on in the world of AI and tech. If you are needing new machines for personal or work, it could mean that now is the time to look for available deals instead of waiting another month or so as prices continue to go up.
