Sridhar Vembu Warns Rising RAM Prices Are Driving Inflation
· Business · India Today, Financial Times
Zoho chief scientist Sridhar Vembu has warned that a 500% increase in computer memory prices over the past year is creating significant financial pressure for businesses globally. Tech leaders, including Apple CEO Tim Cook, have noted that the rising cost of RAM is impacting a wide range of industries as digital integration becomes ubiquitous. Vembu stated that Zoho has struggled to avoid raising prices for its own services despite the sharp surge in memory and AI token costs. The current situation is being compared to historical oil shocks, where supply-demand imbalances led to widespread inflation. While data has long been touted as the new oil, industry experts suggest that physical memory components are now the primary bottleneck driving up costs in 2026.
Why it matters
Rising RAM costs are forcing tech companies to consider price hikes, which could lead to higher costs for software and digital services used by Indian businesses and consumers. This trend threatens to fuel broader inflation as digital infrastructure becomes increasingly expensive to maintain and scale.
Read the original report — India Today
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