Raspberry Pi Price Hike Driven by AI Innovations

In brief

• Price Increase: The Raspberry Pi has raised prices on its single-board computers by $5 to $25, effective immediately.
• New Variant: A new 1GB variant of the Raspberry Pi 5 is now available for $45, featuring advanced processing capabilities.
• Market Impact: The AI industry is significantly affecting memory prices, prompting these changes.
• Future Outlook: CEO Eben Upton indicated the price hikes may be temporary as market conditions change.

Raspberry Pi is raising prices on many single-board computers, with increases going into effect immediately. The Raspberry Pi 4 and 5 modules are shooting up by $5 to $25, depending on the model and the included amount of RAM. The 16GB memory variants of the Compute Module 5 are going up by $20 and now start at $140.

This is a bummer and we know who to thank. It’s the ultimate memory hog of all time, the AI industry.

“The current pressure on memory prices, driven by competition from the AI infrastructure roll-out, is painful but ultimately temporary,” CEO Eben Upton wrote in a blog post. He also said that the company looks forward to “unwinding these price increases once it abates.” Once a price shoots up it doesn’t typically go down again, but we’ll cross that bridge when we get to it.

There is a spot of good news here. The company also announced a new 1GB variant of the Raspberry Pi 5 that costs just $45. This one includes a quad-core 2.4GHz Arm Cortex-A76 processor, dual-band Wi-Fi and a PCI Express slot.

AI companies hoover up RAM like a vacuum over kitty litter and Raspberry Pi is just the latest organization to face consequences. The skyrocketing price of RAM has impacted businesses like CyberPower PC, which recently announced that there would be no holiday sales on memory products.

Of course, AI companies also gobble up GPUs, which has placed a strain on the entire industry. But can you really put a price on an AI-created video of Pikachu getting cooked in a stew or a fake livestream? This is serious stuff that requires every iota of our water, electricity, attention and money.