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Nvidia Increases AI Server Prices
Nvidia has informed its customers that the prices of AI servers containing its chips will increase by more than 15%, due to rising costs of the memory chips used in these servers. These price increases will take effect early next year and will include systems equipped with the Vera Rubin and Grace Blackwell chips, with the percentage increase varying based on the chip generation and memory configurations. This decision comes amid growing demand for AI chips, Nvidia's dominance in the market with a gross profit margin of 75%, and the intensifying chip shortage from Korean manufacturers like Samsung and SK Hynix, which has led to higher prices and unprecedented influence for these companies in the tech industry. The company is awaiting its second-quarter earnings results, amid expectations that these price hikes will impact plans to expand AI data centers and will highlight the crucial role of technology in the future economy.
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