A global shortage of memory chips—driven largely by the AI boom—is now starting to affect something very basic: getting people online.
The head of the GSMA, GSMA, told AFP that rising demand for advanced chips used in AI data centers is making it harder to produce cheaper chips used in everyday devices like smartphones.
In simple terms, the AI industry is eating up most of the supply.
These high-end chips, especially the ones used for training and running AI systems, are extremely profitable. So chipmakers are focusing more on them and producing fewer low-cost memory chips that go into budget phones and laptops.
That shift is pushing up the price of basic smartphones.
And that matters more than it sounds.
Around 2.2 billion people worldwide still don’t have internet access. Many of them rely on affordable mobile phones to get online for the first time. But if entry-level devices become more expensive, it slows down that process.
Officials warn this could especially hurt regions like Africa, where low-cost smartphones are essential for connecting people to the internet.
Some industry leaders believe the shortage could last for years, possibly even until 2030, as AI demand keeps growing.
At the same time, the industry is trying other solutions.
Low-orbit satellite internet networks are expanding, with companies like Amazon investing in space-based connectivity to compete with systems like Starlink. The idea is to bring internet access to remote areas without relying on traditional mobile towers.
But experts say satellites won’t fully replace mobile networks. They may help in remote areas, but for everyday use—especially indoors—regular mobile internet and Wi-Fi will still be essential.
There are also policy concerns. As satellite internet expands across borders, regulators are being urged to make sure these systems follow the same privacy and security rules as traditional telecom networks.
Despite the challenges, the bigger picture is still hopeful: better technology could eventually connect billions more people. But right now, the AI boom is creating an unexpected side effect—making basic internet access harder and more expensive in parts of the world.
