A shockingly inefficient trillion-dollar project
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.
