Nvidia has confirmed what many of us already suspected – GPUs are expensive and Nvidia plans to keep it that way.
During a Q&A session with the media, Nvidia CEO Jensen Huang lifted the veil of suspense over RTX 40-series pricing and insights. not What we hope to hear.
Nvidia just announced the GeForce RTX 4090, RTX 4080 16GB, and RTX 4080 12GB, but not everyone was happy. The capabilities of these cards are not questioned, but their price is. The RTX 4090 arrives with a price tag of $1,599, followed by $1,199 for the RTX 4080 16GB and $899 for the RTX 4080 12GB. These prices are steep, all things considered, but it now seems to be the new normal.
“The idea that chip prices are going to drop is a thing of the past.”
During the Q&A session, Jensen Huang was asked about GPU prices. His reaction was very telling.
“Moore’s Law is dead. […] A 12-inch wafer is more expensive today. The idea that the chip is going to drop in price is a thing of the past,” Nvidia CEO Jensen Huang said in response to PC World’s Gordon Ung.
Moore’s Law is the idea that there is a trend between PC performance and price, with performance doubling for half the price every two years. Huang cited the rising costs of components and the slowdown in surplus power as the driving forces behind higher GPU prices.
Instead of Moore’s Law, Huang focused on price points and generation improvement. “Our performance with Ada Lovelace is monumentally better, at the same price point as Nvidia’s $899 GPU or $1,599 GPU a year ago, two years ago. Better off the charts. “
The response seems to echo what many of us already suspect. After the GPU shortage subsided, Nvidia and its partners were left with an oversupply of graphics cards. Once terribly overpriced, these GPUs are now up for grabs at more reasonable prices, but aren’t selling as quickly as manufacturers had hoped.
“The 3080 was, and still is, a great value, and it will continue to live on,” an Nvidia spokesman said at another briefing, noting that it’s not dead.
The introduction of the RTX 40-series steals the thunder from the RTX 30-series, but Nvidia still wants to sell these older (but still better) cards. The price of the RTX 4090 and two RTX 4080s is so high that it pushes more people to buy one of the RTX 30 GPUs. Be that as it may, it is sad to hear confirmation that prices will continue to follow an upward trend.