Zoho founder Sridhar Vembu has raised concerns over the sharp rise in memory prices. He said the increase, along with higher AI token costs, is making business increasingly difficult.
Vembu said Zoho has avoided raising its prices so far. However, he admitted that continuing to absorb the rising costs is becoming harder.
Memory prices have surged as AI data centres demand more chips. Reports indicate that some DDR5 memory kits have seen prices rise several times over the past year. Higher-capacity memory kits have recorded even steeper increases.
The entire IT sector is feeling the effects. Smartphone makers have already increased prices for several models as component costs rise.
Vembu also believes the memory crisis could change how software is developed. He said programming languages were traditionally designed with the assumption that memory was cheap and widely available.
According to Vembu, developers now need more memory-efficient programming languages and smarter compilers. He said improving code safety and productivity should not result in unnecessary memory use.
The growing AI industry is expected to keep demand for computing infrastructure and memory high, adding further pressure on technology companies.