Nvidia Halved the Memory to Hold the Price, in a Bite

Memory, not the GPU, is now the biggest cost increase inside an AI rack, and Nvidia’s response has been to ship less of it.

• Memory goes from about 9 percent of a rack’s material cost to about 26 percent between the last two generations.
• The memory line alone rises from roughly $374,000 to just over $2 million, inside a rack priced near $7.8 million.
• Nvidia reportedly halved the CPU side memory on its flagship rack, taking each LPDDR5X module from 192GB to 96GB.
• A new 64GB desktop system ships at $4,999, while the 128GB version rose to $6,950 from a $3,999 launch price.
• Deloitte expects meaningful new memory fab capacity only in 2029 or 2030.

Read the full breakdown of why the bill of materials flipped and what to lock first.