The RAM-ifications of AI: how AI is making your computers and phones more expensive

I have a friend who’s looking to build a PC. They wanted to buy it on Black Friday, but since none of the discounts were attractive enough, they decided to wait until Christmas.Guess what? They didn’t end up buying a PC.

That’s, of course, due to rising RAM prices. As AI data centers require more and more processing power, and RAM chip production is limited, the AI boom is increasing demand for this component.

In this article, I explain how the RAM shortage arose and examine its impact on various industries, ultimately affecting consumers. I also look at whether it’s likely that the prices go down anytime soon.

What is RAM, and why is it important?

Let’s start with the basics. You may know RAM as the thing that Google Chrome consumes too much of. But what exactly is it?RAM is short for random access memory, and it’s a computer subsystem used to store information that the processor requires to access quickly. This contrasts with traditional storage, which requires far more time to access, read, and write. To put this in simple terms – RAM is like the short-term memory of a computer, while a storage device (e.g., a hard drive) is its long-term memory.

For AI, RAM is vital, as it allows models to noticeably shorten the time they require to respond to your prompt. Without RAM, a model would have to switch between its hard drive and processing unit constantly. RAM enables AI to respond to prompts quickly, while also maintaining a larger context window, allowing you to build more comprehensive prompts.

That said, RAM is also crucial for other applications. Software such as browsers, photo and video editors, and video games all require RAM, often in large amounts, to function correctly. This makes the current shortage an issue for basically anyone who wants to build a computer. RAM is also a key component of graphics cards. In fact, this type of RAM is the most commonly used in AI data centers.

Why are RAM prices rising?

Paradoxically enough, it all starts with graphics cards. While you may think these are mainly used for gaming, the truth is that their design makes them perfect for other high-load tasks like bitcoin mining or AI processing.. This is why in the past GPUs have become expensive due to the rise of cryptocurrencies, and it's also why RAM prices are rising now.

You see, GPUs require their own RAM, often referred to as vRAM, which is considerably faster than standard RAM. These modules are sometimes called HBMs (high-bandwidth memory). The manufacturing process for both is similar, and when demand for HBM grew, many RAM manufacturers decided to switch to HBM production, resulting in a significant impact on the consumer market.

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Why the demand? With the increasing use of AI, the demand for AI-centric data centers is also rising. These, in turn, require more AI-centric components. Simply said, if you saw the meme about silly AI-generated images making RAM prices grow, they're true in a way. While it may not be the primary reason for the price increase, every single AI application is making components related to AI more expensive.

Another problem is how RAM is manufactured. The process is complex, and only three companies currently manufacture RAM chips: Samsung, SK Hynix, and Micron. This makes the supply minimal and means the market is unable to keep up with the rising demand. With limited production, it's natural that prices begin to rise.

What's the impact of RAM price increases on consumers?

The first noticeable impact for consumers is that PCs are becoming more expensive. RAM prices have jumped from around $120 for a standard 32GB RAM kit in January 2025 to $240 for the same kit in 2026. That’s a massive 100% increase in price. This means prices have doubled within a year, with most of the increase occurring rapidly between November 2025 and the present.

With an entry-level desktop computer costing around $400, this increase can make a significant dent in a user’s budget, as smaller-sized RAM has seen bigger increases (150% year-to-year increase for 16GB). At the same time, laptop and console prices haven't been affected yet due to long-term contracts between manufacturers. However, as these expire, we'll likely see prices of these products increasing.

Furthermore, this crisis may also affect the quality of future products. Flagship smartphones may feature less RAM than previous models to avoid massive price increases. The crisis leaves manufacturers and consumers with a tough choice – whether to pay more or to sacrifice functionality. It’s estimated that the price of producing a smartphone will rise by up to 15%, so if products maintain current RAM capacity, they’re likely to be far more expensive.

Console gamers shouldn't rejoice either. While current-generation console prices are unlikely to rise, given Sony and Microsoft's long-term deals with RAM manufacturers, next-generation consoles may be delayed due to the RAM shortage. Similarly, the Steam Machine may also be delayed or suffer a long-term delay or massive price increase due to RAM manufacturing issues.

You can expect any product that utilizes RAM to experience a price increase or suffer worse performance as a result of the crisis. Not the best situation, particularly for those who have been waiting to upgrade their gear.

Finally, some product lines are disappearing altogether. In December 2025, Micron announced that it is leaving the consumer market entirely. This means that Crucial brand RAM and storage will no longer be in stock, leaving only Samsung and SK Hynix manufacturing RAM chips.

Is there hope for a price decrease?

Shortages don't last forever. However, this one may take a while to resolve. You may think that it is a question of supply and demand, and while it pretty much is, it's also not quite that simple.

You see, RAM production isn't easy. In the past, RAM shortages were often caused by factory fires, and prices took some time to recover. This is because setting up a RAM production line is extremely expensive, complex, and time-consuming. These factors are exactly why the major players decided to shift existing production lines to enterprise RAM, rather than creating new ones from scratch.

In the meantime, any new players in the space would have to create complex setups to convert silicon ingots into functioning RAM. The process is very intricate, and new manufacturers may encounter high failure rates to start off. All in all, setting up a new RAM factory from scratch takes around 2 years and will cost billions of dollars. This makes potential RAM producers unlikely to invest in a venture with uncertain profits.

In fact, in December 2025 it was reported that ASUS would be entering the consumer RAM manufacturing industry. Unfortunately, the company dispelled these rumors, meaning that there's no magic bullet for the RAM crisis.

The truth is that the only solution is time. Time can bring a few solutions to this. Firstly, the "big three” manufacturers are likely to build more production lines using their expertise, expanding both their HBM and consumer chip production. This will decrease prices, although it may take a few years to stabilize.

Another possible solution is potentially quite spectacular. The AI bubble may burst. Companies may see that many AI solutions aren't as productive as expected, and orders may be reduced as data centers fulfill demands. This may make manufacturers shift back to consumers.

Unfortunately, this means that there isn’t a simple solution for the surge in RAM prices. All that’s left is to hope that in time, the components become more affordable, allowing people to build budget-friendly PCs and buy inexpensive hardware once again. Until then, we have to buckle up and be patient.

Conclusion

With AI's ever-growing influence over our lives, it impacts us in many ways. From its power usage and environmental impact to its influence on the job market and supply chain. In the case of RAM, the effect is a natural consequence of the booming AI market.

RAM is the most obvious example of impact on consumers thus far. It doesn't just affect a niche, it affects products that we use in our everyday lives. Unfortunately, the price of progress is often paid by those who can’t afford it.

Hopefully, as the AI boom slows down or bursts, RAM prices will become more affordable. Until then, we can only be patient.