New reports indicate that both AMD and Nvidia are set to increase the prices of their consumer GPUs 'significantly' this year. If accurate, these hikes could take effect as early as next month.
This info was disclosed by sources stating that the price surges are attributed to the rising costs of memory in the computer hardware market. The surge in demand is largely driven by the construction of extensive AI data centers.
Expect these increases to compound over time. An initial price rise is expected in January for AMD GPUs and February for Nvidia's lineup, with gradual increases continuing throughout the year.
Notable GPUs such as Nvidia's GeForce RTX 50 series and AMD's Radeon RX 9000 series are likely to be affected, with estimates suggesting the Nvidia RTX 5090, initially priced at $1,999, could soar to $5,000 this year.
The reasons for these impending price hikes are clear. Manufacturing costs of GPUs are rising due to increased construction expenses, and companies focused on AI applications are heavily demanding this hardware. Nvidia CEO Jensen Huang noted that the next generation of AI will require '100 times more compute' than previous iterations, highlighting the insatiable demand for GPUs.
As demand for GPUs escalates, so will their prices, particularly because both AMD and Nvidia recognize they can charge more to AI companies reliant on this technology for growth.
This situation will likely impact everyday consumers seeking PC components for gaming, as prices are expected to rise sharply in the upcoming months, aggravated by standard supply and demand dynamics within the hardware sector.
Simultaneously, the gaming industry continues to shift towards AI development, with companies like Square Enix aiming to replace a significant portion of their QA processes with AI by 2027, underscoring the growing interface between gaming and artificial intelligence.
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