Raspberry Pi raises prices up to $25 as AI industry demand strains memory supply

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Raspberry Pi has implemented immediate price increases of $5 to $25 across its single-board computer lineup, citing unprecedented pressure on memory costs driven by AI infrastructure demands. The Raspberry Pi 4 and 5 modules face significant hikes, with 16GB Compute Module 5 variants now starting at $140. CEO Eben Upton attributes the changes to competition from AI data centers but promises to reverse increases once market conditions stabilize.

Raspberry Pi price increases take effect immediately

Raspberry Pi has announced immediate price increases across its popular single-board computers, with hikes ranging from $5 to $25 depending on the model and RAM configuration

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. The Raspberry Pi 4 and Raspberry Pi 5 modules are the primary targets of these adjustments, marking a significant shift for the company known for delivering affordable computing solutions. A 4GB Raspberry Pi 4 will now cost $60, up $5 from its previous price, while an 8GB model jumps by $10, from $75 to $85

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. The most substantial increase affects the top-end Raspberry Pi 5 with 16GB of LPDDR4 memory, which now demands $145, up $25 from its previous price point.

Source: Gizmodo

Source: Gizmodo

AI industry demand drives rising cost of memory

CEO Eben Upton directly attributes these price increases to the AI industry and its voracious appetite for memory components. "The current pressure on memory prices, driven by competition from the AI infrastructure rollout, is painful but ultimately temporary," Upton wrote in a company blog post

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. The AI industry demand has created unprecedented strain on the memory market, as major tech firms construct data centers globally that require massive amounts of high-bandwidth memory. DRAM manufacturers are increasingly refocusing their production toward AI data centers, which are willing to pay significantly more for these computing components than consumer-focused brands

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. This shift has created a ripple effect throughout the entire supply chain, with some RAM prices increasing by 500% in recent months.

Higher memory prices impact extends beyond Raspberry Pi

The rising cost of memory has affected numerous businesses beyond Raspberry Pi. CyberPower PC, a major prebuilt PC maker, announced late last month it plans to adjust prices of all its desktop towers starting on December 7, with no holiday sales on memory products due to market conditions

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. Major PC component manufacturers like TeamGroup and Corsair have both issued public statements confirming that contract prices for DRAM and NAND have doubled in recent months

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. The 16GB memory variants of the Compute Module 5 have also seen a $20 increase, now starting at $140

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New budget option offers alternative for builders

Amid the price increases, Raspberry Pi introduced a new 1GB variant of the Raspberry Pi 5 priced at $45, offering a more affordable entry point for certain projects

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. This model includes a quad-core 2.4GHz Arm Cortex-A76 processor, dual-band Wi-Fi, and a PCI Express slot

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. However, the limited memory may prove challenging for many modern applications, as even small-scale projects like cyberdecks typically require more RAM to handle today's internet browsers effectively

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Market outlook suggests prolonged pressure on component costs

While Upton expressed the company's hope to unwind these price increases once market pressure abates, analysts paint a less optimistic picture. Industry experts have warned that relief may not arrive until 2027 at the earliest, with Digitimes reporting that the memory supply situation will likely worsen going into 2026

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. UK-based computer retailer Overclockers UK told PC Gamer that graphics card prices may increase late this year, with conditions expected to deteriorate further in 2026. The broader implications extend to GPUs, which rely on VRAM, and CPUs, both of which are expected to become more expensive as the AI infrastructure rollout continues to strain global supply chains.

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