Behind the AI Hype: The RAM Shortage

Since autumn 2025, it has become a routine: every two months, Raspberry Pi discloses another round of price increases.

The hike announced in early October affected the Compute Modules of the 4th and 5th generations. The 4 GB versions rose by $5; the 8 GB by $10. The Pi 500 was also touched (increases ranging from $10 to $100 depending on configuration). The development kit for the Compute Module 5 (rising from $5 to as much as $135) also saw a bump. “Memory costs about 120% more than it did a year ago,” commented Eben Upton, the head of Raspberry Pi.

Nothing lasts forever,” he lamented in early December when announcing further increases. The Compute Modules were again affected, at the 16 GB level (+$20). Most variants of the Pi 4 and 5 were also impacted.

Old price New price
Pi 4 4 GB $55 $60
Pi 4 8 GB $75 $85
Pi 5 2 GB $50 $55
Pi 5 4 GB $60 $70
Pi 5 8 GB $80 $95
Pi 6 16 GB $120 $145

« Years of RAM in stock » for older-generation Pis

Since then, Eben Upton stopped naming new prices. He simply communicates the level of the increase. In early February, the increases were +$10 on the 2 GB versions of the Pi and Compute Modules 4th and 5th generations. The 4 GB versions had risen by $15; the 8 GB by $30; the 16 GB by $60. Also affected were the Pi 500 and 500+. However, there was no change for the older generations (Pi 3, Zero…), Raspberry Pi noting “years of stock” with LPDDR2.

Also read: Raspberry Pi caught in the AI fever

The latest announcement, made on April 1, again concerns the Pi 4 and 5, the Pi 500/500+, and the Compute Modules 4 and 5.

Pi 4/5 4 GB +$25
Pi 4/5 8 GB + $50
Pi 4/5 16 GB + $100
Pi 500 + $50
Pi 500+ + $150
Compute Module 4/4S 1 GB + $11.25
Compute Module 4/4S/5 2 GB + $12.50
Compute Module 4/4S/5 4 GB + $25
Compute Module 4/4S/5 8 GB + $50
Compute Module 5 + $100
Dev kit for Compute Module 5 + $25
Pi AI HAT+ 2 + $50

Eben Upton now asserts that LPDDR4 memory used in the Pi 4 and 5 has multiplied in price by a factor of seven over the past year. In this context, the company introduced a mid-range 3 GB configuration of the Pi 4. A similar move had been made in December with a 1 GB Pi 5.

Enough DRAM for the six months

The day before this latest round of announcements, Raspberry Pi presented its annual results. Between 2024 and 2025, revenue grew by 25%, reaching $323 million. Operating profit also rose (+63%, to $26.5 million) despite a fall in gross margin (24.1%; down 0.3 percentage point). After settling supplier debts, cash reserves stood at about $28 million (down 39%). For the first time, the company shipped more microcontrollers (8.4 million) than boards and modules (7.6 million).

In light of the DRAM situation, the company highlights its supplier diversification, inventory management, and its “price adjustments.”

Reflecting current pressures, finished goods inventory fell from $63.8 million to $31.2 million. It leaves roughly a month of stock on hand. At the same time, component inventory rose from $92.9 million to $114.1 million. The buildup of memory chips is the main cause.

On the Pi 4 and 5, which account for 65% of board shipments, LPDDR4 has come to represent 21% of production costs in the second half of 2025.

For most of its product variants, Raspberry Pi estimates having enough DRAM for the first half of 2026. It should be sufficient for the year on the Pi 3 and Zero and on the 2 GB Compute Modules 4 and 5.

Dawn Liphardt

Dawn Liphardt

I'm Dawn Liphardt, the founder and lead writer of this publication. With a background in philosophy and a deep interest in the social impact of technology, I started this platform to explore how innovation shapes — and sometimes disrupts — the world we live in. My work focuses on critical, human-centered storytelling at the frontier of artificial intelligence and emerging tech.