AI infrastructure buildout is driving up prices for specific components — particularly memory and NAND flash storage, where we've seen spikes like a fourfold increase in SSD prices. Hosting companies are passing these costs on to customers, which does raise real questions about which smaller players can stay profitable as margins tighten. The underlying cost pressure is real and confirmed by sources like ABC News and Fortune (Meta's infrastructure costs quintupled in 2 years). But the picture is more specific than a blanket claim that AI is "eating the supply chain" across the board. The price increases hit certain components hard — particularly storage and memory — rather than creating uniform 2-10x multipliers for hosting costs everywhere. And while these pressures are creating consolidation in the industry, there's no data confirming an inevitable wave of bankruptcies for smaller players. Some will struggle, but the outcome depends on how individual companies navigate these constraints, not a predetermined collapse.