Artificial intelligence is causing ‘chipflation’

(NBC, KYMA) - Artificial intelligence (AI) has inspired the creation of a new word in the English language: chipflation.

This is because chipmakers are focusing on the high-profit world of AI data centers, and they're making fewer chips for the electronics we all need. So we're seeing huge price hikes.

Product reviewer Brian Westover says, "People usually have saved around $800 for a laptop and for a very long time that was a reasonable amount."

That's no longer the case, prepare for sticker shock the next time you're in the market.

Westover said, "Median price has actually climbed up to $1,600 which is double what people have saved up."

Apple has increased the prices across 14 product lines, and they're not alone.

Experts say giant AI data centers are to blame for a huge shortage in memory chips.

"There are only three major companies that make these chips, and so they've shifted a lot of their resources to this high performance AI memory which leaves less manufacturing capacity for the consumer stuff," Westover said.

Those manufacturers have warned the shortage could last until 2030.