How AI Is Increasing the Price of Technology: The Real Reason Behind the Rising Costs
Artificial Intelligence (AI) is transforming the world—but it’s also transforming price tags. From smartphones and GPUs to subscription software and cloud services, technology is getting more expensive, and AI is one of the biggest reasons behind this trend. But why is AI increasing the price of tech , and should consumers be worried? Let’s break it down in a simple, beginner-friendly way. 1. AI Hardware Needs Powerful Machines Modern AI tools require high-end hardware to run efficiently. This includes chips like NVIDIA GPUs, specialized processors (NPUs), and servers that can handle huge data loads. High demand for GPUs → Prices go up Limited chip supply → Higher costs passed to consumers Companies like NVIDIA, AMD, and even Apple are investing billions in AI chip R&D The result? Phones, laptops, and computers cost more because the hardware inside them is more advanced (and more expensive to make). 2. Companies Are Spending Millions on AI Development Training AI...