A new Artificial Intelligencer report highlights how the booming demand for artificial intelligence is reshaping the global tech supply chain — and consumers are already feeling the impact. Memory chips, especially high-bandwidth memory (HBM) used to power large AI models and data centers, have become scarce and significantly more expensive. Major tech companies have secured long-term supply contracts for these chips, leaving fewer resources available for everyday devices like smartphones, laptops, and gaming PCs.
As a result of this supply squeeze, prices for consumer electronics have risen, and retailers have started rationing memory products. Manufacturers are prioritising production of AI-grade components, which are more profitable than standard chips, deepening shortages for mainstream tech buyers. Expansion of chip production capacity is underway, but meaningful relief is not expected until new facilities come online in 2027 or 2028.
The article also notes that venture capital investment has heavily concentrated on AI technologies, driving a surge in funding for large AI models, infrastructure, and specialised platforms. This intense focus has slowed funding for non-AI startups, underscoring how the AI boom is dominating innovation and financial resources in the broader tech ecosystem.
While the current demand for AI hardware and funding resembles a “gold rush,” analysts warn there’s risk inherent in this rapid surge. If AI demand shifts or slows before new supply catches up, the industry could face oversupply and price volatility in the future.
