General Motors now expects new vehicle prices to rise this year, citing growing costs for critical electronic components as demand for AI hardware surges worldwide. The biggest pressure comes from DRAM memory chips, used in infotainment systems, digital instrument clusters, and advanced driver-assistance features. GM Chief Financial Officer Paul Jacobson told Nikkei Asia that the automaker expects material input costs to increase by between $1.5 billion and $2 billion this year, excluding tariffs, and expects those cost pressures to become more severe during the second half of 2026. According to Nikkei Asia, DRAM prices have increased roughly sixfold over the past year as AI demand has surged. Consulting firm AlixPartners estimates the automotive industry accounts for about 10 percent of global DRAM consumption today, while AI already consumes roughly 32 percent of worldwide supply, projected to climb to nearly half of global production by 2028. Jacobson told Nikkei Asia that GM now expects average North American vehicle prices to increase by approximately 0.3 percent this year, a shift from earlier forecasts suggesting prices would remain flat or decline slightly.