GoPro just officially warned investors in their 8-K with the SEC, that the AI memory crunch may push the action-camera company past its survival line.

That AI data-center driven memory-demand has tightened supply, pushed memory prices up, and left smaller consumer-hardware companies like GoPro fighting for parts against richer buyers.

GoPro’s Q1 revenue fell 26%, its lender rules have already been breached, and the company now says there is substantial doubt about staying alive as a business.

The brutal part is that GoPro sells hardware in a price-sensitive market, so higher component costs can hurt margins even when customers refuse to pay much more.