Some of Nvidia’s major customers have been notified of price increases exceeding 15% for servers containing its artificial intelligence chips, including the Vera Rubin and Grace Blackwell models. These increases, effective for systems shipped early next year, stem from surging memory chip costs, with South Korean manufacturers Samsung and SK Hynix along with US-based Micron dominating global DRAM production. Nvidia’s ability to raise prices illustrates the growing leverage of memory producers amid explosive demand for AI infrastructure. The company maintains a 75% gross margin and currently faces no viable competitor in this market, despite custom chip programs from Amazon, Microsoft, Google and Meta.
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