The Hidden Cost of the AI Boom
From delayed proposals to rising hardware prices: how chip manufacturers' focus on AI Datacenters is reshaping IT procurement
Today I was informed by a supplier that the market is undergoing significant changes that may lead to delays in price approvals and supply, as well as increased technology costs.
What he says is that chip manufacturers, such as Nvidia and others, are prioritizing the supply of chips to Artificial Intelligence Datacenters, at the expense of other supplies, such as computers, multifunction printers, and other devices.
According to him, it is expected that this situation will continue throughout 2026 and 2027, and that it will only normalize in 2028.
Which will, in every respect, be similar to what was experienced during the pandemic.
What happened during the pandemic?
During the Covid-19 pandemic, there were several delays. Some companies, due to a shortage of computers, had to provide computers with i3 processors to administrators - something that would normally be unthinkable, but had to be done, as the alternative was having no computers at all.
I recall that at ExpressGlass, it was during this phase that, for some time, we stopped purchasing from our usual suppliers and started getting computers from retail stores - basically anywhere we could find them - deviating from our usual and more professional models. This was how we resolved the situation. When stock was available, it was picked up immediately and the issue was resolved.
We felt the impact on computers, but the most concerning issue was with the toners for the Xerox multifunction printers.
Those were very worrying times because we still didn’t have electronic invoicing, so shipments from DiverAxial were required to go out with an invoice.
It was illegal for the carriers to make deliveries without the invoices, even if they had already been issued in the system. The carriers themselves wouldn’t even accept doing it. If they were stopped by the authorities and didn’t have the invoice, a fine would be imposed.
This put the entire operation and business of ExpressGlass at risk, since DiverAxial is its main supplier.
Therefore, at the time, it was necessary to source toners from various places. Coordinating all of this was not easy. We filed complaints and requested stock, but there simply wasn’t any. During this phase, the truth is that we faced significant risks.
Reality or speculation?
It is still being determined whether this will become a reality or if it is mere speculation. But the fact is that several delays are already occurring, particularly in the approval of prices and proposals.
The supplier even shared that they have already experienced a 70% increase, and since they have a supply contract, they are actually being heavily penalized.
Great observation on the supply chain dynamics. The parallel to pandemic shortages is spot on but what's really intresting is how datacenter demand is fundamentally diferent from consumer spikes becuase it's sustained and exponential rather than temporary. My experience shows the 2028 timeline might be optimistic if inference deployment accelerates faster than fab capacity.
Do you think this is also a signal for companies to start reinforcing inventory and long-term supply agreements now? Of course, without falling into panic-driven overstocking that could make the situation worse.