News

Rising AI demand fuels fears of higher laptop and console prices

Published

5 months ago

December 6, 2025

Experts warn memory costs could increase, but analysts say wider market forces also at play

A SURGE in global demand for advanced computer memory — driven in part by rapid AI expansion — is raising concerns that laptops, consoles and smartphones could become more expensive in the months ahead.

Industry observers say one factor is a series of major supply agreements involving OpenAI’s “Stargate” project and South Korean manufacturers Samsung Electronics and SK Hynix, which produce much of the world’s high-performance memory. Reports suggest the deal covers hundreds of thousands of chips per month, though the exact proportion of global output remains disputed.

Some experts argue the increased competition for components is already pushing up prices. Others caution that the situation is more complex, with global supply chains, cyclical semiconductor markets and post-pandemic production shifts also contributing to cost pressures.

Memory prices rising — but reasons vary

Several tech companies have reported steeper wholesale costs. According to the open-source tech community around self-build manufacturer Framework, memory modules that were around £100 in late summer are now retailing for several hundred pounds. Framework temporarily delisted its standalone memory kits, citing concerns about scalpers reselling them at inflated prices.

Higher memory requirements in modern phones — with many Android models now starting at 8GB or more — mean manufacturers face difficult decisions about absorbing the cost or passing it on at the till.

Analysts note that memory prices were already forecast to rise after a prolonged slump, with chipmakers gradually winding down production in 2023–24 following weak global PC sales. That has tightened supply even before AI-related demand is factored in.

Small businesses and consumers feel exposed

Colette Mason, an author and AI consultant at Clever Clogs AI, warned that the people most affected will be those who rely on affordable tech.

She said: “We’ve been told AI will democratise everything. But if essential hardware jumps in price, the people hit hardest are students, small business owners and pensioners who simply need a working laptop. It doesn’t feel very democratic when core components suddenly cost several times more.”

Rohit Parmar-Mistry, founder of Burton-on-Trent data firm Pattrn Data, said rising memory costs risk becoming a “quiet tax” on UK businesses.

“A 300% increase in a single component doesn’t just affect gamers,” he said. “It affects every company that needs to refresh equipment. If hardware becomes a luxury item, then AI tools have to start delivering real value rather than hype.”

Other experts say consumers may have options

Not everyone believes the public will be forced into steep upgrades.
Mitali Deypurkaystha, an AI strategist, said many people can avoid paying inflated prices altogether.

“Most AI runs in the cloud,” she said. “You don’t need the newest memory to use ChatGPT. If consumers choose refurbished or older components instead of paying top-end prices, chipmakers will feel that pressure. We’re not entirely powerless.”

Chipmakers yet to respond directly

OpenAI referred Newspage to earlier comments by CEO Sam Altman, who said Korea had the talent and infrastructure to be a “global leader in AI” and praised collaboration with Samsung, SK Hynix and the Korean government.

Samsung and SK Hynix — the two dominant memory producers — have not commented publicly on the reported long-term allocation agreements. Industry analysts say it is common for manufacturers to prioritise high-value enterprise clients during supply squeezes, but warn that consumer-level disruption depends on how quickly production capacity ramps up in 2025–26.

A price rise — but how steep?

Despite strong warnings from consultants, economists say it is too early to know whether UK consumers will face increases as high as “£300 more”, because:

Manufacturers may absorb part of the cost
Retailers often buy components months in advance
Prices could stabilise if chipmakers expand output
The worst spikes tend to occur in niche or high-performance modules

However, all agree that AI’s appetite for hardware is now a major force shaping the global tech market, and that ordinary consumers are likely to feel at least some impact.

News

Lifeboat launched after pleasure boat suffers engine failure off Tenby

Published

1 hour ago

May 2, 2026

Tom Sinclair

A 21ft PLEASURE boat was towed to safety after suffering engine failure between Lydstep and Giltar.

TENBY’S all-weather lifeboat was requested to launch shortly after 10:00am on Friday (May 1), after the occupants of the vessel reported that they had lost engine power.

The volunteer crew were quickly on the water and arrived at the scene around 10 minutes later.

After speaking with those on board, and with the boat in danger of drifting onto rocks, the crew decided the safest course of action was to tow the vessel back towards Saundersfoot.

Once at Saundersfoot, and with the tide out, the pleasure boat was moored in the bay. Its occupants were then taken ashore using the lifeboat’s Y-boat, where they were met by members of Tenby Coastguard Rescue Team.

The lifeboat returned to station at 11:25am.

Launch photo: Judd Kohler, St Davids Lifeboat Deputy Coxswain.

Charity

Homeless charity plans ‘safe haven’ centre with accommodation and training

Published

1 hour ago

May 2, 2026

Tom Sinclair

A new community project aims to tackle gaps in support for people living on the streets

A NEW community initiative is aiming to provide a “safe haven” for homeless people in west Wales, offering accommodation, training and round-the-clock support.

Safe Haven Homeless CIC has been set up by founder Dave Thomas, who said the idea came after witnessing the struggles faced by people sleeping rough in Carmarthen and Aberystwyth.

He described seeing individuals forced out of temporary camps, including one case where fencing was erected to prevent a homeless person returning to a former site.

Mr Thomas said: “We spoke to people who simply couldn’t access help because they had no fixed address or internet access. That was a real eye-opener.”

Research carried out by the group found that while a number of organisations provide advice and outreach support, there is a lack of safe, stable accommodation offering a full package of services.

The Herald understands that demand for housing remains high, with waiting lists for social housing stretching to around two years in some cases, particularly for those not in priority groups.

The project aims to address this by purchasing a property with land to create a multi-use support centre.

Plans include a main building with communal living areas, a kitchen, counselling rooms, IT facilities and training spaces, alongside outdoor accommodation such as bell tents and log cabins.

The site would also include recreational and work-based facilities, including a workshop, greenhouse, gym and fishing lake, designed to support wellbeing and provide opportunities for skills development.

Mr Thomas said the centre would be staffed 24 hours a day to ensure continuous support, addressing a gap where many services only operate during office hours.

The initiative also aims to become partly self-sustaining, with income generated through a small campsite, training activities and partnerships with external organisations.

Support networks are already being developed, including links with counsellors, charities and local businesses willing to offer employment opportunities to those using the service.

The organisation is being run by a team of directors alongside Mr Thomas, and is also building connections with other community projects in the region.

Mr Thomas added: “We believe this is a new and dynamic way to support homeless people. It’s about giving them not just a place to stay, but real support to rebuild their lives.”

Business

Ty Bert Caribbean Kitchen brings taste of the Caribbean to Newport

Published

6 hours ago

May 2, 2026

Tom Sinclair

A NEW café has opened in Newport, Pembrokeshire, bringing Caribbean flavours to the seaside town — with affordable bed and breakfast accommodation also planned for the near future.

Ty Bert Caribbean Kitchen has opened in the former youth hostel at the old school on Lower St Mary Street.

The venture is being run by Newport local Roberta James, who hopes to reopen the building’s five bedrooms as budget accommodation as soon as possible.

The café, which opened earlier this month, serves Caribbean dishes including jerk chicken, barbecue pork belly and goat curry, alongside more traditional options such as baked potatoes, tea, coffee, hot chocolate, cold drinks and cake.

Roberta said the idea began after she responded to a Facebook post by Newport Town Council asking what the hostel, which had been closed since Covid, could be used for.

Soon afterwards, she was putting together a business plan and submitting it to Pembrokeshire County Council, drawing on her family’s background in catering and hospitality.

“I wanted to bring it back as a hostel but also have a place for the community and somewhere to use for events and groups,” she said.

The Caribbean theme was inspired by a holiday to Antigua.

Roberta said: “I am a foodie and I loved the food there. It was simple and flavoursome.”

She is recreating those flavours with the help of her friend Jason, who is from the Caribbean.

Box meals are available to eat in or take away, with protein mains served with rice, potato, coleslaw and salad for £12.95.

“The menu is perfect for families or for people that like a bit of spice and something a bit different,” Roberta said.

Customers have already been taking meals down to the beach or Parrog, while those eating in can use the downstairs café seating or a large family-friendly room upstairs, complete with big tables and board games.

Roberta said: “The response has been really good. We have had a lot of the locals coming in. They have been really supportive.

“During the Easter holidays we had tourists coming in. They really enjoyed having something different and reasonably priced.”

Ty Bert Caribbean Kitchen is currently open from Friday to Monday, from 12:00pm to 8:00pm, with plans to open on Thursdays later in the season. Diners are also welcome to bring a bottle with their meal.

Roberta said she hopes to open the hostel as soon as possible. Painting parties have already been held to freshen up the two dormitory rooms, two double rooms and one family room.

She is now waiting for Pembrokeshire County Council, which is leasing the property to her, to repair the boiler.

Roberta said transforming the former hostel into boutique budget accommodation, while creating the café, had been a real community effort, with friends and local businesses pitching in.

“There have been lots of lovely people in the community offering to help,” she said. “They want us to succeed, which is really nice.”

More information is available on the Ty Bert Facebook page.