After swallowing the world's memory and storage supply, AI data centers are now going for CPUs

The ongoing AI push has been nothing short of a nightmare for consumers. Everyone has felt the impact of DRAM and NAND shortages, with a 256GB DDR5 memory module now costing a staggering $5,700 in China. One would assume this is about as bad as it gets. But AI datacenters' appetite for resources is far from satisfied, as reports suggest CPUs are next in line.

PC and server manufacturers recently told Nikkei Asia they are unable to meet demand because Intel and AMD have stopped supplying enough processors. On top of that, server and OEM PC manufacturing could face delays and price hikes of up to 10% to 15%.

TrendForce also recently reported that Intel has already raised prices on certain entry-level and older generation notebook CPUs by more than 15%. The blue team is also reportedly planning a 10% price increase for its consumer CPUs, including the Intel Core Ultra, effective at the end of this month.

The situation has reached a point where companies like Dell and HP are reporting some of the worst delays and shortages in recent months. Server manufacturers report that lead times have stretched from 2 weeks to several months, and sources suggest the situation could worsen further in the second quarter of 2026.

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The ripple effect has also pulled Valve into the equation. The company was recently forced to delay the launch of its Steam Machine console PC, along with the Steam Frame and Controller, which were initially planned for early 2026. A launch this year now looks unlikely.

While the outlook is gloomy for most of the tech industry, Arm is one of the few beneficiaries of the current climate. The company recently announced its first production silicon chip in its 35-year history, the Arm AGI CPU, designed specifically for data center AI applications. This puts Arm in a strong position to meet demand for agentic AI processors that Intel and AMD are currently failing to satisfy.

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That said, there is no sugarcoating it - these shortages are here for the foreseeable future. The European market is seeing slight price drops, but they remain far from 2025 levels. The shutdown of tools like Sora offers a sliver of hope that things might eventually settle down, but for now, gamers will have to deal with AI not just derailing their PC upgrade plans but also their favourite characters with DLSS 5.