Paul Spain: Gorilla Tech CEO warns of coming tech price hike

Consumers are being warned of a price hike for technology like phones and computers due to the rise of AI creating a shortage of computer chips. 

The cost for parts like RAMs have also sky rocketed with some products already costing double, or triple, what they did a year ago. 

"There's only so much production capability on the planet, and what we're seeing is where these chips are fabricated, they are diverting their production away from the RAM that's used in our consumer devices to the high bandwidth memory that is being used in the AI data centres," Gorilla Tech CEO Paul Spain told Andrew Dickens.

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Episode Transcript

Speaker 1 (00:00):
Andrew dickens, all right, it is nearly ten out of
four and consumers are being worn. The phones and computers
are set to get a whole lot more expensive. That's
because of the rise and rise of AI. It's creating
a shortage of computer chips. The price of computer parts
like rams have also skyrocketed. You should see the size

(00:21):
of these data centers they are building and how much
kittens needed. Some products are now costing twice as much
now compared to last year. So Gorilla Tech CEO and
tech commentator Paul Spain joins the now.

Speaker 2 (00:34):
Good morning, Paul, Hey Andrew.

Speaker 1 (00:36):
So, chips and RAM, all of all this stuff are
in every phone and computer. We can't do without the name.

Speaker 2 (00:42):
No, that's right.

Speaker 3 (00:43):
You know when we look at when we look at
a computer or we look at a phone, you know
you've got the key components as your your process or
your central processing unit, which is effectively the brain.

Speaker 2 (00:54):
Then you've got the RAM or the sort.

Speaker 3 (00:56):
Of core core memory there which I guess in our
minds as would also be part of our brain.

Speaker 2 (01:03):
And then you've got the longer, longer term storage.

Speaker 3 (01:06):
And the bit that's really skyrocketing is the RAM and
we're seeing even here in New Zealand right now, some
RAM has tripled in price, others, as you know, at
least twice.

Speaker 2 (01:22):
You know what it was six months ago.

Speaker 1 (01:24):
Gamers are freaking out, and so why are they getting
so expensive so quickly? Is this pure supply and demand?
Because AI don't need so many chips in RAM.

Speaker 2 (01:34):
It is very much a supply and demand issue.

Speaker 3 (01:37):
There's only so much you know, production capability on the planet.
And what we're seeing is where these chips are fabricated,
they are diverting their production away from the RAM that's
used in our consumer devices to the high bandwidth memory

(02:00):
that is being used in the AI data centers.

Speaker 1 (02:02):
So what devices in tech will be affected the most?

Speaker 3 (02:07):
Look, I think you know at the moment probably though
those being impacted are more your gamers or those building
a custom computer. If you want to avoid the impact
of this, then buying a full blown computer or smartphone

(02:27):
now that the manufacturer has already put the memory in
and has already set the price in with some of
those that the prices may not move as much in
the in the shorter term, and brands like Apple tend
to have their prices fluctuate much less than, for.

Speaker 2 (02:47):
Instance, a custom built computer.

Speaker 3 (02:51):
But you know, I would be I'd be wary if
you're thinking about that from a personal purchase perspective of
sitting around too long.

Speaker 1 (03:00):
Meanwhile, data centers two up an awful lot of power
and that's affecting power prices because so many data centers
are being being built. We've heard now the Google's bought
a nuclear power plant because they need the power to
do to run an AI data center. The question is
the AI bubble is it going to burst? And if
it does burst, would you then expect the price to

(03:20):
come back down? And would you possibly expect an entire
market meltdown?

Speaker 3 (03:26):
Well, yeah, I'm not sure. I'm not sure about the
entire market meltdown. But look the the investment into new
data centers for AI that would likely fall you know,
or reduce if we see, you know, a big impact
on the on the share market with the AI stocks.

(03:48):
You know, we look at Microsoft, you know who roughly
you know, doubled in in their value, the share price
you know, over the last you know, say three three years.

Speaker 2 (04:00):
If they were to fall back to.

Speaker 3 (04:02):
Those kind of pre uh you know, AI boom prices,
then I would imagine they would be you know, they'd
be completely stopping, you know, most of their investments into
AI data centers.

Speaker 2 (04:15):
Though though to a degree, we you know, we.

Speaker 3 (04:17):
Have been told that a lot of these bigger players
have you know, have reduced some of their their data
center investments.

Speaker 2 (04:24):
But yeah, certainly on the on the AI front, you
know that.

Speaker 3 (04:28):
These investments do do do do continue to to a
fair degree.

Speaker 1 (04:32):
Fascinating times and I thank you so much. Paul Spain,
Gorilla Tech CEO.

Speaker 2 (04:37):
Yes A for more info about broadcast. For more from
Heather Duplessy Allen Drive, listen live to news talks.

Speaker 3 (04:43):
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