GhostofWar
Regular
Maybe they might try to add some AI services to omniverse in the future.
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Talk about missing the point. They aren't seriously suggesting Nvidia offer their GPU's for free. Nvidia could still make a nice, healthy profit on 40 series GPU's while offering us more reasonable prices.
DegustatoR
Legend
What are you basing this on? Where are the numbers which prove this?
Not really, no. Investors would (rightfully) sue if profit is being thrown away
DavidGraham
Veteran
Crazy world!
wccftech.com
Chinese Factories Dismantling Thousands of NVIDIA GeForce RTX 4090 "Gaming" GPUs & Turning Them Into "AI" Solutions With Blower-Style Coolers
NVIDIA's GeForce RTX 4090 "Gaming" GPUs are being turned into "AI" solutions in the thousands to cater to the growing demand within China.
wccftech.com
Why would they do that?
D
Deleted member 2197
Guest
Valeo is suing Nvidia alleging theft of trade secrets - KitGuru
We've covered a few stories on the theft of trade secrets in the tech industry in the past but usual
www.kitguru.net
yup, a few things has to happen: nv gpus dont sell anymore, or amd gpus outclass nv gpus in performance (and also maybe price), or intel does the same
That's a fantastic question, and it's really the crux of the whole thing, isn't it?
If it cost them enough sales to where they saw a notable decline in income, they would be forced to reduce prices.
However, if enough people still bought them anyways, they would not feel any need to change pricing at all. And they might even feel emboldened to raise them further in the future thanks to the new raised pricing expectations they've conditions consumers to have.
Basically, Nvidia's pricing is determined primarily by consumers. If consumers let Nvidia get away with being insanely greedy, then Nvidia will roll with that and they'd be silly not to. Doesn't mean some of us wont be extremely bitter about the situation, though. And yes, this means not just at Nvidia, but also all the people giving in and buying these GPU's at these absolute extortionate prices. Cuz they are literally ruining the GPU market for everybody, permanently. Nvidia has effectively raised prices by more than 100% in one generation, and they will gain the benefits of that for every generation going forward. They got like 10 years of normal pricing increases locked in in a single generation.
arandomguy
Veteran
Nvidia already does give away GPUs albeit not at mass scale with their academic grant program for those doing ML research. You could argue this has been a pillar in establishing Nvidia's platform in the AI space and keeping it there.
An interesting strategy would be to increase proliferation of their GPUs for consumer ML usage to shore up their AI moat. Not necessarily giving them away but at least giving increased access at the grass roots level essentially.
This would of course need to involve artificial product segmentation that introduces limitations and prevents scalability that would lead to commercial or likely even prosumer usage due to the opportunity cost. As well as likely gaming limitations so it doesn't impact that segment either.
It’s true that Nvidia’s pricing is supported by consumer behavior. If people don't pay then prices will drop. The conclusion then is that the market is clearly not ruined for “everybody”. It’s only ruined for the people who aren’t willing to pay the higher prices. That’s how markets work.
Nvidia has an obligation to ship products at a price and volume that maximizes profit. That is their only obligation. It has nothing to do with greed.
Customers have answered.
the 4090 price is likely to be impacted by the card being repurposed for AI , so it's not exactly "customers", is it?
DegustatoR
Legend
In US? Highly unlikely. Even in Asia I wouldn't expect that to have any impact.
D
Deleted member 2197
Guest
You should have also included out-of-stock items.
Oh no, it is ruined for everybody. People are paying higher prices, but it doesn't mean they're happy about it. They still get hurt from this. As does everybody. Most people are just too selfish or short-sighted to understand the damage they do by giving in and cementing these higher prices forever.
DegustatoR
Legend
There are no higher prices though.
Silent_Buddha
Legend
Keep in mind, I'm also at the point where 1000+ USD graphics cards are WAY too expensive for me to comfortably include in my budget so I just don't buy them.
However, you are attributing your own feelings to everyone buying those cards when not everyone is either unhappy or hurt by it. For some of my friends with 4090's, even 3k for the GPU would still be pocket change. They aren't hurt by it and they don't bat an eye at it. Anything less than 5k USD in price is in impulse buy territory.
Yes, I also have friends who had to budget for their 4k series RTX card, while some have bitched about the costs most of them are happy with their cards. So yeah, they'd like cheaper cards, but while some were unhappy with the price others just considered it the price you pay for gaming on PC. /shrug.
I hate it, you hate, other consumers hate it, but not all consumers hate it or are hurt by it.
NVidia on their part are happy to ship less consumer GPUs as demand cools due to high pricing since they are getting higher margins. Revenue and profits are up while GPU shipments are down. That's fine for them as a company. It only hurts them if a competitor can come in to take advantage of the the fact that NV are willing to sell less GPUs to less customers are a higher price.
The problem is that AMD aren't currently interested in that (they'd rather shift their wafer starts from GPU to CPU and keep across the board higher margins and pricing) and Intel while forced to sell at a lower price point are only doing so because their hardware is quite far behind.
I guess the other potential problem with going with lower shipment/higher pricing (margin) strategy is that you reduce the amount of GPUs in the PC gaming space with new tech which reduces the incentive for developers to try to fully take advantage of those newer features while also pushing them towards console first programming WRT to features and tech. But that's a longer term problem that NV might be willing to push into the future as long as they can continue to maintain high margins and enough people are willing to pay those high prices.
Regards,
SB
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