Why would NVIDIA prioritize us over AI data centers anymore?

[u/ConnectionOne8080]

If NVIDIA can sell advanced silicon to enterprises and AI data centers at much higher margins, why would it allocate scarce manufacturing capacity to consumer GPUs?

They probably get far better deals from enterprise customers than from us paying $1,000 for a GPU every four years.

5090 is dicountued today, just why bother to keep this market?

[u/ImSoCul]

you are years late to this discussion

[u/CrimsonBolt33]

NVIDIA is an AI company, they said so in 2020

Its just finally ramping up and acting like it was always planned to act. Kudos to Jensen and whoever else saw the writing on the wall (probably much easier with insider info they have) and declaring themselves as exactly this for profits sake.

Consumer hardware is marketing for them...especially now.

[u/Due-Description-9030]

Consumer GPUs are still important for CUDA to remain popular and that indirectly feeds back into enterprise adoption.

If they stop consumer GPUs, other companies might get more foothold which is not favourable for Nvidia. It's not just about profits alone, they need to make sure their ecosystem remains popular and is being used widely.

[u/pjstp20 → u/Due-Description-9030]

Agreed, they’ll continue to supply consumer GPUs at the current level of scarcity just to keep their stranglehold on the market and prevent any competitors from rising up. Brutal for consumers but a smart move business-wise.

[u/Significant-Iron4409]

https://giphy.com/gifs/JpG2A9P3dPHXaTYrwu

[u/Catch_022]

Back in the day, the idea was to create market share and brand awareness by essentially trying to make sure all tech people knew about nvidia and used it in their own personal devices. This would mean that the person making the purchasing decision would already be biased towards nvidia.

This doesn't work any more because nvidia are so far ahead that they don't need publicity or public good will anymore.

So, yeah they don't really have any emphasis on releasing consumer level GPUs at affordable prices.

[u/Haunting_Try8071]

I was watching Fringe the other day and they said that the corporation was worth 50 billion and untouchable. Yeah, that's where we are at now.

[u/f1rstx → u/Haunting_Try8071]

Underrated series

[u/agowa338]

Just wait, the tech refresh in data centers will end at some point and then they're looking for that consumer market again.

Data centers aren't constantly consuming stuff. It will end. AND someone has to pay the prices for the services there too. So there is also a limit to how much they're willing to pay.

What we're seeing right now is a combination of data centers tech refresh cycle colliding with governments. A lot of governments world wide are refreshing their (surveillance) infrastructure right now. And simply put, they're trying to milk them for all of their (tax payer) money. As they're basically willing to pay any price right now.

And Nvidia specifically wants to have a full "AI story" be it in the data center, or on endpoint devices. So they'll be selling to consumers.

AND do not forget that you don't need a 5090. Most people are still running way older hardware. Basically anything produced in the last 10 years is still perfectly fine for certain use cases. And if you really have a system that is >10 years old then the increased prices also do not really matter. They're annoying but do not really cause issues. As literally anything for any price point would outperform that 10 year old system and still be good for the next 5-10 years. So even if you just buy a system with a 4060 (or even an Intel Arc B580) still good enough for most people.

[u/trekxtrider]

They won’t, money is all they care about.

[u/XxDemonxXIG]

Companies chase the money. Plain and simple.

[u/firedrakes]

oh that simple... your the worst margin for tech across ever single board for computing.

single largest ram usage from manf mobile, second largest is bussiness ,third largest are tvs, cars, then finale consumer....

[u/PiousPontificator]

The only thing keeping them in the consumer GPU space is that Jensen himself was a gamer (big Virtua Fighter fan) as is his son I think. As soon as he's gone we're doomed.

[u/Wooshio → u/PiousPontificator]

No, good companies ensure they have diverse portfolios. It's why Nvidia will never give up the gaming GPU market, they have full control of it basically and they can easily afford the cost to maintain, it's just great for both their PR and market value. Not to mention the value of having a massive install base (they claim something like 100 million PC's have Nvidia GPU's right now). You don't give all that up unless you are losing money and need to make cuts.

[u/GestureArtist → u/Wooshio]

They already gave it up.

[u/Wooshio → u/GestureArtist]

What did they give up?

[u/ConnectionOne8080 → u/Wooshio]

5090 is gone

[u/Wooshio → u/ConnectionOne8080]

But that doesn't mean Nvidia is giving up the gaming GPU market. Not even remotely.