Recent reports suggest that both AMD and Nvidia are planning to raise prices on their consumer GPUs significantly this year. If true, these hikes could take effect as early as next month.
This information, shared by Newsis, points to the rising costs of memory in the computer hardware market. The demand for these components has soared, driven largely by the construction of AI data centers.
Expect the price increase to hit certain models like Nvidia’s GeForce RTX 50 series and AMD’s Radeon RX 9000 series. One shocking forecast predicts that the Nvidia RTX 5090, initially priced at $1,999, could jump to $5,000 this year.
Why are these price hikes happening? The costs of manufacturing GPUs are climbing due to the intense demand from AI companies. Nvidia CEO Jensen Huang has indicated that the next generation of AI will require “100 times more compute” than past models. Similarly, Microsoft CEO Satya Nadella noted challenges in powering the GPUs they already have in stock.
This all points to a future where companies, regardless of their skepticism about AI hype, are investing heavily in GPUs. They’re expecting that the demand for advanced models will grow, thanks to both consumer interest and corporate needs.
For gamers and everyday PC users, this means a tough road ahead. If these reports are accurate, expect a steep rise in the cost of PC parts over the next few months due to supply and demand issues in the hardware market.
Beyond this, video game companies are also getting in on the AI trend. Square Enix plans to use AI to replace 70% of its quality assurance testers by 2027. Ubisoft’s CEO has even suggested that AI could change the gaming landscape as significantly as the shift to 3D graphics did.
As prices rise and tech evolves, it’s clear that both gaming and AI will continue to shape the future of tech, setting the stage for both challenges and exciting innovations.
