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# Why RAM Prices Jumped 400%

**[SK NEXUS](https://daily.dev/sources/sknexus)** · [@ybabur](https://daily.dev/ybabur) · 2 min read · 2 upvotes · 0 comments

## Summary

AI datacenter buildout is driving a massive surge in RAM and SSD demand, as companies like Microsoft, Google, Meta, Amazon, and OpenAI sign multi-billion dollar long-term supply contracts. This is squeezing consumer memory supply, causing some RAM kits to cost 3-4x their previous prices. The ripple effects are hitting consumer hardware across the board, with Apple raising MacBook and iPad prices, Microsoft increasing Xbox prices, and other manufacturers passing costs to customers.

## Content

If you've been looking at PC hardware prices lately, you've probably seen a price bloodbath for RAM and SSDs.

The same thing is now happening to finished products.

Apple recently raised prices across several MacBooks and iPads because of higher RAM and storage costs.

Microsoft has also increased Xbox hardware prices.

These announcements came just weeks after the Steam Machine launched btw. Turns out, RAM has become one of the most precious resources in tech.

The reason is that AI companies are building datacenters pretty fast and they need large amounts of RAM and SSDs.

Companies like Microsoft, Google, Meta, Amazon, and OpenAI are signing long-term contracts worth billions of dollars to secure supply.

And RAM makers are simply following the money.

That leaves less capacity for the RAM kits, SSDs, smartphones, laptops, gaming handhelds, and consoles that the rest of us buy.

The result has been a sharp increase in consumer memory prices. Some RAM kits now cost three to four times what they did not long ago.

This has forced big manufacturers like Sony, Microsoft, even Sony to start passing those costs to the customers.

A trillion dollar hardware supply giant like Apple saying the RAM situation is bad means quite a lot.

People were mad at Valve for not subsidizing the Steam Machine price but it seems every hardware company is going through a hard phase.

If you want more context on how bad this RAM and SSD price situation is and how it affects all of us, you can check out my article linked below:
[https://www.sknexus.org/p/why-ram-ssd-prices-are-rising](https://www.sknexus.org/p/why-ram-ssd-prices-are-rising)

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