Published
By Ashley Cox
While the tide of public opinion appears to be turning against generative AI, we are obliged to draw members' attention to a pressing issue, as this phenomenon slated for its ideological and environmental repercussions readies to hit your pocket.
On 23rd January 2026, Reuters noted how the "rapid build-out of artificial intelligence infrastructure by U.S. tech firms such as OpenAI… has absorbed much of the world's memory chip supply", something that, in turn, has "lifted prices as manufacturers prioritize (sic) components for higher-margin data centers over consumer devices".
With such chips required for almost all digital devices, the real-life RAM-ifications have potential to be huge, as chip resources are increasingly diverted toward the great unknown of AI development, instead of the everyday needs of the humble procurer.
In layman's terms, fewer chips for general consumer technology is set to lead to scarcity, inflating market prices in the process.
And what might it affect? Not only computers but anything using such chips to function, from TV screens to ‘smart’ household appliances to items employing Bluetooth tech, with significantly higher prices expected for laptops, mobiles and game devices.
As things stand, it appears the top microchip producers are pivoting to selling more of the common DRAM (dynamic random-access memory) chips to big AI firms, while also devoting more resources to the production of HBM (high bandwith memory) chips; the chips specifically required to fuel LLM (large language model) services like ChatGPT.
With more time and resources committed to this upstart sector, it stands to reason traditional tech supply chains might suffer, but few had possibly anticipated the scale, with a January 2026 article in the Wall Street Journal observing how chip shortages could even impede car manufacturers, as they "delay vehicle production, in a potential repeat of the pandemic car crisis".
This same feature quoted Sumit Sadana, Chief Business Officer at Micron, one of the planet’s three primary producers of these microchips (along with Samsung and SK Hynix), who shared foreseeing "a challenging situation in terms of being able to meet customer demand for the foreseeable future". Indeed, with Micron recent declaring an intent to abandon the production of its PC memory to service the ostensibly lucrative AI realm instead, it seems this development may threaten to financially impact millions of everyday tech users, who have grown to depend on affordable digital resources for education and day-to-day life.
Indeed, it seems at least until any AI bubble unceremoniously bursts, institutions looking to procure tech-based products may be faced with intertwined challenges of availability, cost and competition, adding unwelcome stresses to purchasing projects.
With over 10,000 registered members across our procurement community, Crescent Purchasing Consortium and its range of frameworks/dynamic purchasing solutions offer institutions a quick and compliant route to market for many of the product types that may well be adversely affected in the weeks, months and even years to come.
Though we cannot guarantee the length or indeed extent of such issues, it might be astute to invest in the procurement of any relevant required tech in the very near future, to stave off potentially inflated costs down the line; particularly should the influx of AI infrastructure continue to accelerate. By being aware of the situation, institutions can at least evaluate things themselves.
The following are some of the applicable framework agreements that may help our CPC members procure within these fields...
Broadcasting and Integration Services
Audio Visual Equipment and Installations Services
ICT Network, Storage and Service Solutions
ICT Hardware and Peripherals Equipment
Each of these frameworks is accessible to members, free of charge, with support documentation and Contract Manager help.
Moreover, three of these six are officially recommended to schools and academies by the UK Department for Education (DfE).
As we work to combat challenges in this article through our collaborative purchasing power and professional expertise, CPC is ready to be your institution's Procurement Partner of Choice, equipping you with knowledge and striving to keep down pricing.
To explore how CPC can support you with procuring chip-reliant tech, contact our ICT framework specialist, Jane Edwards.