Tuesday, June 2nd Edition
Cory Ohlendorf
Compiled and written by
CORY OHLENDORF
Valet. Editor

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Today’s Big Story

Prices for Electronics Surge

 

The AI industry’s unquenchable appetite for computing power led to higher prices on tech

 

It just keeps getting harder to buy stuff, right? First, we had inflation. Then came the Trump tariffs. Now, it's RAMageddon, the memory-related price hikes affecting laptops, smartphones, gaming consoles, and basically any tech product that requires some memory. Let’s not even talk about Iran and gas prices.

And I’m sure you’re a little sick of hearing about how AI is changing everything. But I’ve got some bad news for you. Since last year, the rapid expansion of AI companies like OpenAI (maker of ChatGPT) and Anthropic (maker of Claude) have created huge demand for PC components like graphics processing units (GPUs), memory (RAM), and solid-state storage hard drives (SSDs). The demand is so great that the manufacturers of these components are diverting manufacturing resources away from making components for other things.

Popular Mechanics says, “that’s a problem, as all three are essentials for a wide range of devices.” Initially, the crunch primarily impacted gamers and digital creatives looking to build or upgrade high-powered desktop PCs. But, as the crunch intensifies, there’s a real chance that we may see price hikes across the tech world, from TVs to home appliances.

And supply chain experts told Mashable the global memory crisis will get worse before it gets better. “We will see some alleviation in 2028, but keep in mind that prices will continue to rise throughout,” one said. “And even in 2028, assuming this new [memory] capacity comes online and is able to provide some alleviation, we don't see device prices dropping significantly.”

The chip crisis has hit the gaming industry particularly hard, with Bloomberg reporting that Nintendo’s already expensive Switch 2 gaming console may soon get a price hike. Sony’s long-awaited PlayStation 6 console may also be delayed entirely, according to the publication’s sources. It’s kinda the brutal new reality as AI companies continue to pour hundreds of billions of dollars into enormous data centers, which is also causing electricity prices to spike. Yikes.

 
FYI:

Following record sales last year, the smartphone market could also be clobbered this year as RAM supplies run extremely low.

Trump Backs Off Plan for $1.8 Billion Fund

 

The Justice Department said it would obey a court order pausing the slush fund, signaling a broader pullback

The Trump administration Monday signaled that its nearly $1.8 billion payout fund was on shaky ground, as Republican lawmakers pushed the White House to abandon an idea that had prompted resistance from members of both parties as an inappropriate way to reward the president’s supporters. “It’s dead for now,” one insider told Axios.

Bashed as a political slush fund that could be tapped by those convicted in the Jan. 6 Capitol riot, Trump’s proposal has drawn criticism from the moment it was announced. The plan came about, you’ll remember, as a part of a settlement between the president and the IRS (which also included broad immunity for Trump from IRS audits).

The Justice Department announced that it would abide by a judge’s order Friday to temporarily halt the fund. The department has little choice but to obey a court order, so the unprompted announcement was seen by many lawmakers as a signal that the administration was backing away from the fund. The department said the White House disagreed with the decision but did not make clear whether it intended to fight the issue further in court. A retreat would mark the latest setback for Trump, who has uncharacteristically backed away from some of his political initiatives in recent days, including his determination to remake the Kennedy Center and plans for an elaborate concert series to mark the nation’s 250th birthday.

 
Meanwhile:

Those high-wire negotiations with Iran? Insiders say Trump finds it ‘very boring.’

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Cross-Border Tunnel Discovered

 

A fake SoCal store concealed the entrance to a the massive smuggling tunnel

Mexican authorities found a cross-border tunnel in Tijuana than ran for nearly 1,000 feet to a well-known street in San Diego. The smuggling tunnel reaches a depth of about 55 feet and has operating infrastructure, including a rail system, lighting and ventilation.

And it led to a seemingly unassuming “Buy 4 Less” store in a San Diego County neighborhood. Prosecutors allege that it’s been used to smuggle some $45 million worth of cocaine from Mexico into the United States. According to the Los Angeles Times, it’s believed to have been operated by the Jalisco New Generation cartel and was discovered by a Homeland Security task force last week. On Monday, four men were charged with participating in a scheme to use the tunnel to traffic massive amounts of narcotics.

Homeland Security investigators began paying close attention to the Buy 4 Less in December when they observed suspicious activity around the store. A new group of seven or eight “employees” was seen regularly going in and out of the building carrying a large number of suitcases. Customers, on the other hand, did not appear to be frequenting the business, prosecutors said.

 
FYI:

Cocaine remains the 2nd most popular illicit recreational drug in this country behind cannabis.

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Today’s Member Extras

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Science & Space Debriefing

The Trends You Need to Know About Right Now

 

NASA’s new supersonic jet, the big Blue Origin setback and an “astonishing” James Webb Telescope discovery.

 

Today on

 

We go inside the Blackstock & Weber headquarters to talk with the man reviving American footwear and fashion.

 
 

Cooking gets a lot more enjoyable when you're using the right tools. Great Jones pairs thoughtful design with standout style.

 
Tip of the Day:

Swapping out your basic showerhead for a high-performance model is the easiest home upgrade that'll actually improve your daily routine—and most can be installed in minutes.

Morning Motto

Think it, speak it, do it.

 

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