Tim Cook Warns AI Demand Is Driving Memory Chip Prices to Unprecedented Highs

Tim Cook, Apple's former CEO, warned that surging demand from artificial intelligence data centers has driven memory chip prices up to unprecedented levels, making it increasingly inevitable that higher costs will be passed on to consumers. In his final earnings call as Apple CEO, Cook described the rise in memory and storage costs as a "100-year flood, noting that the strong demand from AI data centers is putting serious pressure on the chip market." Cook said Apple has tried to absorb the rising costs rather than pass them on to customers, but added that the current pressure is not sustainable. He pointed to growing signs across the industry that AI investments are boosting demand for memory and data storage products.

The report also noted that Elon Musk has drawn attention to rising costs in chips and technology products. Analysts suggest that increased data center investments could create price pressure across a wide range of areas, from devices to energy costs.