Demand for computer memory by the AI industry has led to an increased demand for RAM that manufacturers are struggling to meet. The resulting shortage has caused RAM prices to more than triple over the past six months, a cost being passed onto consumers. 

RAM acts as quick access memory storage for electronic devices. It’s essential to products like phones, computers and vehicles. The recent increase in RAM prices is resulting in anywhere from 10 to 30 per cent increases to some of these electronics. Phone brand Xiaomi is signalling price hikes while Dell and ASUS have already increased prices on their computers in response to the memory shortage.

“It’s going to impact anything that has a computer,” said a Canada Computers technician in an interview with the Public Alternative*. “If you’re building or buying a new computer or a laptop, the price is going to go up quite a lot.”

Unfortunately for consumers, AI companies are willing to pay more for RAM. Manufacturers have followed the increased demand from the sector, shifting production away from consumers and towards lucrative corporate contracts. 

In October, South Korea’s SK Hynix and Samsung Electronics signed a letter of intent with OpenAI to supply memory chips for OpenAI’s data centres. Under the partnership, OpenAI’s monthly orders could increase to 900,000 wafers, around 40 per cent of global output according to technology outlet Tom’s Hardware.

In December, U.S. based Micron Technology announced the closure of its consumer RAM brand. According to a statement from Micron’s chief business officer, Sumit Sadana, Micron withdrew from the consumer market “to improve supply and support for our larger, strategic customers in faster-growing segments.”

Together SK Hynix, Samsung and Micron act as an oligopoly, accounting for around 93 per cent of global RAM production. With each of these companies courting corporate contracts, previous consumer RAM production levels may not begin to return until AI demand is fully fulfilled — which could take years. 

New production facilities are being developed, but the multi-year delay between planning and production has industry leaders like Micron CEO Sanjay Mehrotra and Team Group’s General Manager Gerry Chen predicting that the supply shortage will persist beyond the 2026 calendar year.

Unless the “AI bubble” pops, those in the market may need to look towards last-gen, low-speed, and lower-capacity RAM — to pay the same they would have for better RAM six months ago. In 2026, consumers will be expected to pay more for less.