NVIDIA claims “cheap” graphics card pricing won’t go back

NVIDIA

Jensen Huang, the CEO of NVIDIA, thinks that Moore’s Law is over. This means that we won’t see low-cost GPUs.

This week, NVIDIA announced the GeForce RTX 4080 and 4090, two new high-end graphics cards. But besides what they can do technically, most of the talk about GPUs has been about how expensive they are. Customers aren’t happy, and the company is aware of this. Because of this, Jensen Huang, the CEO of NVIDIA, has come out to explain why the prices for the new generation are so high.

But before we go on, we need to make one thing clear. Most of the complaints are about the prices of the two RTX 4080 models, which have gone up 29% since the last generation. The RTX 4090, on the other hand, cost 7% more than the 3090 did when it was first offered. In the second case, the rise isn’t very big if we think about how much the performance has improved, which is what NVIDIA data shows.

But since the RTX 4080 is made for a larger audience and its prices show what we can expect from the RTX 4070 and 4060, it’s not surprising that the market isn’t happy.

But what does NVIDIA think about it all? Jensen Huang told MarketWatch that the price of the RTX 4080 and RTX 4090 is fair because of a number of things. First, there is the new Ada Lovelace architecture, which is a performance improvement. But Huang also brings up the issue of production. He says that making the new cards is much more expensive than making the old ones.

Moore’s Law Is No More”

The leader of NVIDIA said, “A 12-inch silicon wafer is much more expensive today than it was yesterday. It’s not just a little more expensive; it’s a hell of a lot more expensive.” Huang thinks that Moore’s Law is no longer true in the present day, which is another interesting point.

“Moore’s Law is no more. Moore’s Law can no longer make things work twice as well for the same price or the same way for half the price every year and a half. It’s gone for good. So, the idea that a chip will get cheaper over time is, sadly, no longer true. Computing is not a problem with chips; it is a problem with both chips and software.”

Moore’s Law, which Intel co-founder Gordon E. Moore came up with in 1965 and changed ten years later, says that every two years, the number of transistors in microprocessors doubles. This double-sidedness can obviously lead to a higher power and, in some cases, a lower cost of production.

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Based on what the CEO of NVIDIA said, we can assume that the market for GPUs no longer has low prices. At least when it comes to the more expensive ideas.

It’s important to remember that the company’s goals may be different from those of some of its competitors. AMD is about to release its new RDNA 3 cards, and Intel’s Arc line just hit the market. We will see if both can compete with NVIDIA not only in terms of performance but also in terms of price.

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