Nvidia to raise AI server prices over 15% as memory costs surge

Nvidia is raising prices on AI servers by over 15% due to soaring memory costs, affecting systems with Vera Rubin and Grace Blackwell chips starting early next year. The exact increase varies by chip generation and memory configuration. Contract manufacturers have informed major customers like Microsoft, Google, and Oracle. Rising DRAM prices, driven by AI infrastructure demand outpacing supply, are the primary cause. Nvidia's dominant market position is being challenged by memory suppliers' pricing power. Its largest customers are developing custom AI chips to reduce dependence, though they still rely on Nvidia for most capacity. Nvidia reports earnings next week.