G.Skill issues warning on rising RAM prices due to AI demand

In recent weeks, the prices of memory kits have surged to record heights, effectively ruining any plans consumers may have had for upgrading their machines in the near future. One of the most popular memory makers, G.Skill, has now offered a statement, acknowledging recent price hikes.

Here is G.Skill's statement in full:

“DRAM prices are experiencing significant industry-wide volatility, due to severe global supply constraints and shortages, driven by unprecedented high demand from the AI industry. As a result, G.SKILL procurement and sourcing costs have substantially increased. G.SKILL pricing reflect industry-wide component cost increases from IC suppliers and is subject to change without notice based on market conditions. Purchasers should be mindful of the pricing before purchasing.”

The warning confirms reports that AI companies are behind the shortage, as they are buying up the vast majority of supply on the market. Recently, Micron, one of the biggest memory suppliers in the world, killed off its consumer-facing brand, Crucial, in order to focus all of its efforts on serving enterprise customers. Recent reports indicate that SK Hynix, another one of the world's leading memory suppliers, is expecting shortages to last until at least 2028.

This is likely to have a major impact on the PC market in the coming year, impacting desktops, laptops, and other memory-equipped devices like smartphones and yes, graphics cards too.

KitGuru Says: PC enthusiasts have been through this before during the crypto-mining boom, which made sensibly-priced graphics cards impossible to come by for a long time. Now, rather than crypto-farms, we are contending with massive enterprises all looking to build the most powerful AI systems possible.

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