Don't forget tying big portion of said market to proprietary technologies in the process.
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Yeah I would expect it’s the exact opposite. Nvidia’s market success in graphics likely bolsters confidence in their enterprise products. YouTubers and internet squabbles are likely irrelevant.
There are a few reasons why it’s highly unlikely Nvidia will exit the graphics business. The most obvious reason is that they still make a lot of money from it. Graphics brought in 58% of revenue in FY 2022 and and 44% of revenue in FY 2023. Even if graphics revenue shrinks in terms of relative share it is still growing in absolute terms. They’re not going to abandon that revenue.
The other obvious reason is that AI is all the rage now but it can vanish just as quickly. The current hype is reminiscent of Bitcoin mining and covid demand spikes. There is no guarantee that enterprise revenue is sustainable at these levels. There is significant risk that enterprise consumers will not develop products that will demand ongoing investment in ML hardware after this initial surge. There is also risk due to competition from other ML hardware.
Then there’s Nvidia’s investment into graphics in recent years. Ray tracing, DLSS, Omniverse, Remix are all very graphics focused technologies. There are no signs that they’re backing down from pushing graphics tech.
It seems the anxiety about consumer graphics boils down to people being frustrated about price increases and perf/$ stagnation. Those things have nothing to do with whether Nvidia will continue selling graphics cards though.
DegustatoR
Legend
Yep. Nvidia isn't doing anything unique with GPUs at the moment, so if what they are doing is a sign of them leaving gaming segment soon then everyone will leave this segment for the same reasons.
People have been singing that tune for a long time now. Hasn't happened, isn't happening.
I know there's some very good-sounding arguments about how because of high AI demand, there's shortages there, and that every Geforce-destined wafer that gets made is one less H100-destined wafer that can be made, but according to information, their shortage and bottleneck is not coming from lack of wafers, but packaging.
So cutting production of Lovelace parts is not going to help increase the supply of H100's.
The AI chip market is also likely to grow more competitive in the very near future, and there's reasons to think that the explosion in demand will not sustain like it has so far. It could potentially be a huge disaster for Nvidia to put all their eggs in the AI basket.
DavidGraham
Veteran
They don't have to put all of their eggs in that basket.. just enough of them. Look at the PC market already... its not going to support $1000 mid range GPUs, $1500 high end, and $2000 enthusiast GPUs....
Not while consoles cost $500-600..
DegustatoR
Legend
It is a good thing then that there are no $1000 mid range GPUs on it.
Yes nVidia is quiting the market after they have solved the performance problem of Pathtracing. There is nothing else to archive anymore...
I think a lot has to do with reviewers not covering what nVidia is providing: No DLSS, no FrameGeneration, no Raytracing, no Pathtracing, no Reflex etc. That would be the same to claim Sony will quit the console business because the PS5 costs $100 more than the PS4...
I think a lot has to do with reviewers not covering what nVidia is providing: No DLSS, no FrameGeneration, no Raytracing, no Pathtracing, no Reflex etc. That would be the same to claim Sony will quit the console business because the PS5 costs $100 more than the PS4...
There will be.. especially when they could be making AI chips with that silicon.
DegustatoR
Legend
When we'll get inflation to increase the prices of mid range (200-500) to 1000 then sure. Hopefully it won't happen until late 2000s though.
Otherwise no.
AI h/w pricing has as much relation to gaming market as proviz and HPC pricing does. IOW close to none.
That's not even the important part and I regret having brought it up. NVIDIA may decide it makes no sense to allocate production capacity to gaming parts when they could put that capacity towards higher margin compute stuff. It doesn't matter how much money there is in the gaming GPU market if there is much more in the AI market and all the chips come from the same place with limited capacity.
We already have the $800 4070Ti which is firmly a midrange desktop part. In correct timeline it was called the RTX4060.
AD102
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AD107 (not a desktop part?)
Also we came very close to the $900 AD104. $1000 midrange doesn't seem so far away.
I guess initially yeah, but mid to long term the fabs will begin to offer capacity if the demand is that large
DegustatoR
Legend
By what metric is it "firmly a mid range desktop part"?
Yes, if NVIDIA severely cuts back on the GPU market it doesn't have to be permanent. They have such a tremendous technological and marketshare advantage that they could pause for a couple years and be fine. Even today NVIDIA doesn't seem too concerned about moving graphics cards. They can afford to let them sit on shelves.
I'd like to see NVIDIA switch back to a 2nd teir manufacturer for GPU like they did with Ampere. Seems it could be better for everyone.
I mean it is in the middle of the Ada Lovelace product stack. Considering what NVIDIA is currently offering, it is midrange in both price and performance.
The PC GPU market will be what we dictate it is. The demand is there, it's just the pricing that isn't.
They will be forced to drop prices if people aren't buying. Problem is - we really need a large drop in sales, cuz the extreme margin increase that Nvidia is getting from these GPU's means they can absorb some drop in sales.
The 4080 is the equivalent of the 3070 in Ampere equivalence. It's a cut down upper midrange die for $1200. It's already here. You know this, we all know this. No amount of parroting your dishonest claims about this will change this. You've already admitted that you'd call a 750Ti a 'high end' GPU if Nvidia priced it at $1000, so your opinion is frankly just asinine.
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