AI’s Hidden Inflation: Why RAM, Not Data, Is Becoming the New Oil
What Happened
Zoho founder Sridhar Vembu warned that RAM prices have surged up to 500% in a year, driven by AI boom and massive demand from data centers, making it harder for businesses to absorb costs and increasing the risk of higher prices for technology products and services.
Key Takeaways
The AI race is creating a new bottleneck: memory chips. Just as oil price shocks once raised costs across entire economies, expensive RAM is now becoming a critical cost driver for the digital economy. Companies may need to redesign software to use memory more efficiently, while consumers could face higher prices for AI-powered products and services.