Samsung enterprise SSD prices skyrocket thanks to AI's appetite for storage

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Samsung enterprise SSD prices skyrocket thanks to AI's appetite for storage
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Consumer-grade devices won't be hit as hard

Samsung intended to raise prices on its enterprise SSDs by 15 percent in the second calendar quarter of 2024, but unrelentingly high demand boosted by AI might push that higher still.since late last year, so it's nothing new to see bigger price tags as this year drags on. However, the same AI-driven demand for server-grade hardware stuffed with Nvidia H100 GPUs is now hitting enterprise SSDs, and prices might climb even higher than forecast.

An extra 5-10 percent here or there might not sound like much, but on datacenter scales it can make a big difference. Each individual server can be equipped with at least a few terabytes of storage, and when datacenters are composed of hundreds of nodes, increasing the price of SSDs is likely to have a material impact on customers' budgets.also estimates that enterprise SSDs across the board will see a 20-25 percent jump in price.

This was all thanks to high supply as demand declined at the end of 2022 but production wasn't cut until later. In 2023, Samsung and rivals SK hynix and Micron aimed to bring down production levels and clear out inventory, something they accomplished by the end of year, when NAND flash prices started to go up instead of down.

However, this may have been an over-correction given the massive quarter-to-quarter price increases so far for 2024. The entire SSD market in Q1 is estimated to have seen 23-28 percent higher prices than in Q4 of last year, according to TrendForce. An extra 20 or 25 more on top of that would make enterprise SSDs 50 percent or more expensive over the span of half a year.

With much of the growth of the SSD market being propped up by AI-induced demand, there's lots riding on AI being a success. After all, if there is a bubble and it pops, not only will those super-expensive SSDs have become a pretty bad deal in retrospect, but SSD makers like Samsung will see a major source of increasing revenue evaporate. Simply look out for libraries imagined by ML and make them real, with actual malicious code.

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