Nvidia’s largest customers have been notified that servers containing its AI chips will rise in price by more than 15% in many cases from early next year, driven by memory costs. The company reports quarterly earnings next week.
Nvidia’s biggest customers have been told what the memory shortage is going to cost them. Servers containing its AI chips will rise in price by more than 15% in many cases, on systems shipping from early next year.
The increases reach the newest hardware. Systems built around the Vera Rubin and Grace Blackwell chips are affected, with the size of the rise depending on the chip generation and the memory configuration.
The warnings came through the middlemen. Companies that assemble servers under contract for operators including Microsoft, Google and Oracle have notified their customers, and Nvidia did not respond to requests for comment.
What makes this notable is who is passing on the cost. Nvidia holds a gross margin of about 75% and is the most valuable listed company in the world, and it is still not absorbing this.
