Editor’s note: This work is part of AI Watchdog, The Atlantic’s ongoing investigation into the generative-AI industry.
As they scramble to keep their systems online, AI companies are making things expensive for the rest of us. Large language models such as ChatGPT and Claude are so resource-hungry that tech companies may be purchasing 70 percent of the world’s supply of high-end computer memory, causing a shortage. As a result, the prices of computer memory and storage are skyrocketing: Hard drives that I bought for my reporting two years ago for $350 each were $800 when I checked two weeks ago, and are now out of stock. The prices of some laptops have gone up as much as 50 percent, and low-cost computers are being hit the hardest. Affordable entry-level computers may “disappear by 2028” according to one forecast. And the memory shortage is expected to continue for years.
The memory is being put into data centers, which tech firms are expanding at incredible speed. They are planning to multiply total U.S.-data-center capacity by a factor of eight over the next few years. The demand for electricity at these sites is already so great that some companies are repurposing jet engines to power them.
The problem is not simply that AI is being deployed so widely or quickly. Other computer technologies have seen similarly massive growth without triggering such a large spike in electricity or a shortage of computer components: Video and music are now streamed around the globe, accounting for many terabytes of internet traffic daily; the smartphone boom required the manufacturing of billions of devices that are now transferring huge amounts of data; billions of household devices are also now part of the Internet of Things; and whole industries have moved their operations to cloud software, which is hosted not in the sky but in, yes, data centers.