Both AMD and Nvidia will “significantly” raise the prices of their consumer GPUs this year, according to a new report. If this report is true, both companies will add price increases for next month.
This information is taken from Newsis.which argues that these price increases will occur as a result of the high cost of memory in the computer hardware market right now. The increase in cost has been driven by the construction of large-scale artificial intelligence data centers, leading to a huge demand for such components.
These price increases will continue to worsen, according to Newsis industry sources. While the initial price increases will reportedly come in January for AMD and February for Nvidia, both companies will continue to gradually increase prices throughout the year.
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This price hike is expected to impact some GPUs, including Nvidia's GeForce RTX 50 series and AMD's Radeon RX 9000 series, which are already expensive. The Nvidia RTX 5090, which launched at $1,999, could rise to $5,000 this year, according to Newsis.
The reasons for the price increase are obvious. Not only is GPus becoming increasingly more expensive to produce due to increased construction costs, but artificial intelligence companies like OpenAI are becoming hardware-hungry giants. Nvidia CEO Jensen Huang said next-generation AI will require “100 times more computation” than older models.And Microsoft's CEO wondered if they didn't have the electricity to install the GPUs in their inventory..
Regardless of whether you believe the hype around generative AI and LLM, the reality is that these companies are buying GPUs (and RAM) with the expectation that they would need an absurd amount of hardware for future models and consumer demand for those models. So we have a huge demand for GPUs which is driving up the prices. Nvidia and AMD know that they can also charge artificial intelligence companies more, since these companies rely on such hardware for further growth.
For the average PC parts consumer for gaming purposes, this means your PC parts will become significantly more expensive in the coming months if this report is correct, and they will likely become more expensive due to underlying supply/demand issues in the hardware market.
Meanwhile, video game companies are declaring their intention to use AI during development. Take Enix Square, which aims to replace 70% of its quality control with HAI by 2027and Ubisoft whose CEO believes artificial intelligence will be as big a revolution as the transition to 3D.
