The global artificial intelligence (AI) race is creating winners, billion-dollar companies and increasingly powerful technology. But it could also leave ordinary consumers paying more for their next smartphone.
As tech giants race to build and expand AI data centres, they are buying enormous quantities of the chips and memory needed to power them.
That growing appetite for hardware is now putting pressure on the same supply chain that smartphone, laptop and other electronics makers depend on.
In other words, the battle to dominate AI could eventually show up on the price tag of your next gadget.
The Competition for Hardware
AI systems require enormous computing power.
Behind every chatbot, image generator and increasingly powerful AI tool sits a vast network of data centres packed with advanced processors and memory.
Tech companies are spending billions to secure that hardware.
But they are not the only ones who need it.
Smartphone and computer manufacturers also depend on chips and memory to build their devices.
As AI companies snap up more of those components, the competition for available supply could push costs higher.
When Higher Costs Reach Consumers
Those rising costs have to go somewhere.
Manufacturers can absorb them, but that can cut into profits. The other option is to pass at least part of the increase on to consumers.
That means your next smartphone or laptop could become more expensive, even if you are not particularly interested in AI.
The irony is hard to miss.
AI promises to make our devices smarter and more useful, yet the race to build it could also make those same devices harder to afford.