AI ‘Chipflation’ is here: How rising demand is pushing prices up as much as Trump’s tariffs

Artificial intelligence is not just changing the technology industry. The growing demand for AI hardware is also pushing up prices for consumers. A new analysis from researchers at the Minneapolis Federal Reserve found that the huge demand for memory and computer hardware needed for AI has added about as much to core inflation as the tariffs imposed by President Donald Trump.

The AI boom is also making some everyday technology more expensive. The hardware needed to build and run AI systems, including computer chips, memory, storage and cooling equipment, is in high demand. That is pushing up costs for products people actually buy, such as laptops, tablets, smartphones and gaming consoles.