**The Chip Rush: How AI is Making Smartphones Unaffordable for Nigerians** As the demand for artificial intelligence (AI) continues to surge globally, a shortage of memory chips has emerged, threatening to push smartphone prices out of reach for many Nigerians. According to market observers, phone prices could increase by as much as 60% in the coming months, making it challenging for consumers to afford even basic devices. **The AI Boom and the Chip Conundrum** The rapid growth of AI has led to an increase in the construction of AI data centres, which require massive amounts of memory chips to function efficiently. Unfortunately, these chips are also essential components in smartphones, laptops, and cars. As a result, AI is winning the battle for chip supply, as companies are willing to pay top dollar for these high-margin components. **A Global Phenomenon with Local Implications** The global spending on AI infrastructure is projected to reach a staggering $334 billion in 2025, with companies like Microsoft, Amazon, Google, and Meta leading the charge. NVIDIA, a leading manufacturer of AI GPUs, saw its data centre revenue skyrocket by over 200% in 2024. As a result, chip foundries are prioritizing AI contracts over traditional consumer electronics, leading to a scarcity of chips for consumer devices. **The Impact on Nigerians** The chip shortage is already having a significant impact on smartphone prices in Nigeria. Peter Sokunbi, a market observer, has witnessed a 100% increase in prices for 8GB RAM chips in just two months. If the trend continues, smartphone prices could rise by 15% to 20% in the coming months, making them even more unaffordable for many Nigerians. **A Long-Term Problem** According to Sassine Ghazi, CEO of a US semiconductor company, the chip shortage could continue well into 2027, as it will take at least two years for new manufacturing plants to come online. This means that Nigerians may have to wait for a long time before smartphone prices become more affordable. In conclusion, the chip rush is a global phenomenon with significant implications for Nigerians. As the demand for AI continues to surge, it's essential for consumers to be aware of the potential impact on smartphone prices. Only time will tell when the chip shortage will be addressed, and smartphone prices will become more affordable for Nigerians.