News reporting focused on AI and machine learning, covering the companies behind these technologies, their real-world applications, and the ethical concerns they raise. This includes areas like generative AI (large language models, text-to-image and video), speech tech, and predictive analytics.
Nvidia AI servers are set to cost over 15% more due to a memory shortage, affecting systems built around Vera Rubin and Grace Blackwell chips. The price hikes, driven by rising DRAM costs at Samsung, SK Hynix, and Micron, will impact shipments early next year. Cloud giants like Microsoft, Google, and Oracle have already been informed of the increases, while Nvidia has not commented.
PJM Interconnection, operator of the largest U.S. electrical grid, will temporarily cut power to data centers of 50 megawatts or larger starting June 2027 to prevent blackouts. The move follows an auction that failed to secure enough new generating capacity. Affected customers will be compensated, and the decision is expected to push data centers toward on-site power generation, often using diesel generators.
Alphabet is developing a new server chip internally called Frozen v2, expected in 2028, to make its Gemini AI models up to 10 times more efficient than current Google AI chips. The chip aims to address AI computing shortages and reduce reliance on Nvidia, boosting investor confidence ahead of earnings.
A shortage of memory chips, driven by soaring demand for high-bandwidth memory (HBM) used in AI data centers, is forcing consumer electronics prices higher. HBM consumes three times the wafer capacity of standard memory, and its allocation is set to jump from 2% to 20% by 2026. The shift is already hitting sub-$100 smartphones hardest.
Google, Amazon, Microsoft, and Meta plan $725 billion in combined AI spending for 2026, a rise from February's $610 billion estimate and 77 percent above 2025's $410 billion record. The firms spent $130 billion in the first quarter. Google reports strong cloud growth amid capacity shortages and rising chip costs.
Shortages of Apple's $599 M4 Mac mini base model have led to overpriced listings on eBay. The device, popular for local AI models like OpenClaw, is sold out on Apple's site with no delivery options. Sellers offer new units at $715 to $979, more than $100 above retail.
Anthropic temporarily removed Claude Code from its $20 Pro plan for some new users but reversed the decision after backlash. Head of Growth Amol Avasare admitted the current subscription tiers no longer fit modern Claude usage patterns, especially for compute-heavy tools. This reflects wider industry compute shortages affecting providers like OpenAI and GitHub.
Suppliers of memory chips expect to fulfill just 60 percent of demand by the end of 2027, according to reports. Major producers like Samsung, SK Hynix, and Micron plan new factories, but most will not operate until 2027 or later. The focus on high-bandwidth memory for AI leaves consumer devices facing higher prices on phones, laptops, and more.