Nvidia raises AI server prices over 15% as memory chip costs surge

Nvidia customers notified about AI-related price hikes above 15%, Bloomberg News reports

Aug 22 (Reuters) - Some of Nvidia's (NVDA.O), opens new tab largest customers have been told prices of servers containing its AI chips will rise by more than 15% in many cases with memory ⁠chip costs soaring, Bloomberg News reported on Saturday. The price hikes will go into effect on systems shipped early next year and will impact systems including those with ⁠the flagship Vera Rubin and Grace Blackwell chips, the report added citing people ⁠familiar with the process. The increases will depend on Nvidia's ⁠chip generation and memory configurations, they said. Reuters couldn't ⁠immediately verify the report. Reporting by Disha Mishra in Bengaluru, Editing by Franklin Paul Our Standards: The Thomson Reuters Trust Principles., opens new tab

Nvidia customers reportedly warned about AI-related price hikes

* Nvidia said it will raise prices for some of its largest customers by at least 15%, Bloomberg reported. * The increases are expected to take effect on systems shipped early next year. In this article * NVDA Follow your favorite stocksCREATE FREE ACCOUNT Jensen Huang, chief executive officer of Nvidia Corp., speaks to members of the media following the company's "Japan AI Ecosystem" reception in Tokyo, Japan, on Thursday, July 16, 2026. Kiyoshi Ota | Bloomberg | Getty Images Nvidia plans to hike prices for some of its largest customers, Bloomberg News reported Saturday. The chipmaker is set to increase the cost of servers containing its artificial intelligence chips, including Vera Rubin and Grace Blackwell, by more than 15% in many cases, according to the outlet. The price gains will reportedly depend on the chip generation and memory configurations. Customers can expect the price increase to take effect on systems shipped next year, Bloomberg said. Nvidia has been facing the soaring costs of memory chips, which are essential for its GPUs and systems. Read the full Bloomberg report here. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Nvidia AI server prices are rising more than 15% from early next year

Systems built around Vera Rubin and Grace Blackwell chips will cost more from early next year, in increases that reach every buyer including Europe's planned AI gigafactories 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. The leverage sits with three companies. Samsung, SK hynix and Micron produce most of the world's DRAM, and while output is rising it has not caught up with demand from AI infrastructure. Consumers met this first. Apple and Qualcomm have both said component costs are pushing prices up, Nvidia raised its gaming card prices this month and AMD followed within days, while Amazon Web Services has already put GPU prices up 20%. Europe's exposure runs through public money as much as private. The EU has committed around €20bn to a set of AI gigafactories, and a French consortium has bid $10bn for one site. Those bids and budgets were built on last year's hardware prices. A 15% increase on the servers such a facility exists to buy is a material change to a plan drawn up before the memory market tightened. Commercial European operators are buying into the same market. Nebius is tripling Nvidia capacity at its Finnish data centre, on economics that have just moved. The build-out was already getting harder. Project delays, labour shortages, tighter capital markets and local opposition have complicated data centre plans, and this adds cost to all of it. Nvidia reports quarterly earnings next week, which is when the useful question gets asked. Not whether demand is holding, but who ends up paying for memory, because at the moment the answer appears to be everyone downstream.

Nvidia customers notified about AI-related price hikes above 15% | Fortune

Some of Nvidia Corp.'s biggest customers have been told that the prices of servers containing its artificial intelligence chips are going up more than 15% in many cases with memory chip costs soaring. The price hikes will go into effect on systems shipped early next year and will impact systems including those with the flagship Vera Rubin and Grace Blackwell chips, according to people familiar with the process, who asked to not to be identified commenting on communications that haven't yet been made public. The increases will depend on the generation of Nvidia chips and the memory configurations, they said. Companies who build the servers under contract for large data center operators such as Microsoft Corp., Alphabet Inc.'s Google and Oracle Corp. have recently notified their customers of the forthcoming increases, the people said. Nvidia representatives didn't respond to requests for comment. The inability of the industry's most dominant company to hold the line on prices or absorb growing costs shows how much leverage makers of memory chips - Samsung Electronics Co., SK Hynix Inc. and Micron Technology Inc. - have amid a surge in demand for AI infrastructure. Major technology companies including Apple Inc. and Qualcomm Inc. have recently said they've been forced to charge more for their products because of chip shortages. Nvidia's accelerator processors are the heart of computers that create and run AI software. Their effectiveness depends on how much dynamic random access memory, or DRAM, they are paired with. The two Korean companies and Micron account for most of the world's production of that type of chip. While they've been increasing output, they still haven't caught up with surging demand. That's driven the price of the commodity-like components up massively and given their manufacturers unprecedented influence in technology. Nvidia is one of the most profitable companies in semiconductors. It's able to charge tens of thousands of dollars per chip because supply -- from contract manufacturer Taiwan Semiconductor Manufacturing Co. -- still can't meet runaway demand. The company has a gross margin, or percentage of sales remaining after deducting the cost of production, of 75%. Originally derived from PC gaming chips that sold for hundreds of dollars, AI accelerators have seen prices being driven up by incessant demand and, as yet, a dearth of viable alternatives for Nvidia's offerings. Nvidia has also raised prices for its gaming-oriented PC graphics cards, industry news site Tom's Hardware reported earlier this month. How Nvidia's customers react to this latest move and whether it will create an opening for its competitors will likely depend on whether they're able to secure enough memory themselves. Major customers like Amazon, Microsoft, Google and Meta are all pursuing their own in-house chip programs but are still dependent on purchases from Nvidia for their data center build-outs. Their ability to push forward with greater independence will also depend on their access to supply from Samsung, SK Hynix and Micron. The price increases are also likely to add complexity to the industry's massive AI data center build-out ambitions. Project delays, labor shortages, tightening capital markets and community resistance to developments have already complicated many plans. Nvidia is reporting fiscal second-quarter earnings next week. The updates by the world's most valuable publicly-traded company have become a key update for the technology industry and investors who have poured money into AI infrastructure on the promise that it will transform the economy.

Nvidia customers face over 15% server price hikes as memory costs soar - report By Investing.com

Investing.com -- Rising memory chip costs are pushing up the price of servers that use Nvidia Corp's artificial intelligence chips, with some of the chipmaker's biggest customers facing increases of more than 15%, Bloomberg News reported on Saturday, citing people familiar with the matter. The higher prices are expected to apply to systems shipped early next year, including those equipped with Nvidia's flagship Vera Rubin and Grace Blackwell chips, the report said. The size of the increase will vary depending on the Nvidia chip generation and memory configuration. Companies that build servers under contract for major data center operators such as Microsoft Corp, Alphabet Inc's Google and Oracle Corp have recently notified customers of the upcoming price increases, the report said, citing sources who asked not to be identified because the communications have not yet been made public. Memory chipmakers Samsung Electronics Co, SK Hynix Inc and Micron Technology Inc have gained unprecedented leverage amid a surge in demand for AI infrastructure, with the two Korean firms and Micron accounting for most of the world's DRAM production, the report said. The effectiveness of Nvidia's AI accelerator processors depends on how much DRAM they are paired with, the report said. Major technology companies including Apple Inc and Qualcomm Inc have recently said they have been forced to raise prices because of chip shortages. Nvidia has a gross margin of 75%, which said the chipmaker can charge tens of thousands of dollars per chip because supply from contract manufacturer Taiwan Semiconductor Manufacturing Co still cannot meet runaway demand. Nvidia has also raised prices for its gaming-oriented PC graphics cards, the report said, citing industry news site Tom's Hardware. Major customers including Amazon, Microsoft, Google and Meta Platforms are all pursuing their own in-house chip programs but remain dependent on purchases from Nvidia for their data center build-outs, according to the report. Their ability to gain greater independence will also hinge on access to supply from Samsung, SK Hynix and Micron, the report added. The price increases are also likely to add complexity to the industry's massive AI data center build-out ambitions, the report added, noting that project delays, labor shortages, tightening capital markets and community resistance to developments have already complicated many plans.