AI Boom Drives Up Tech Costs

Salt Lake City News Today | 2 Min News | The Daily News Now! · Jun 26, 2026 · 1m

The AI boom is sending shockwaves through everyday prices as tech giants pour hundreds of billions into building AI infrastructure, driving up demand for chips, electricity, and labor. With chipmakers prioritizing data centers, consumer gadgets are getting more expensive, and software costs jumped 15% in May—electronics components even rose 27%. Big names like Apple and Microsoft are already raising prices, citing soaring memory and storage chip costs. While some believe AI will eventually cut costs through productivity, Fed officials warn it’s too early to count on that, as inflation…