Nvidia blames Moore for high GPU prices

Nvidia blames Moore for high GPU prices
Nvidia blames Moore for high GPU prices

Nvidia is asking a lot for its new GeForce GPUs, but according to the CEO has no choice. According to him, Moore’s law has ended and chip prices will no longer fall immediately.

Nvidia just introduced its GeForce RTX 40 series, based on the brand new Ada Lovelace architecture. The GPU specialist launched three cards in the range: two variations of a GeForce RTX 4080 and a GeForce RTX 4090. The suggested retail price for the models is between 1,099 and 2,000 euros.

That is a lot. Part of the responsibility for the price increase lies with the current economic situation. The euro is weak against the US dollar, causing manufacturers to boost euro prices for new products. Also in the US, however, the GPUs are more expensive than usual.

Better performance and inflation

Nvidia CEO Jensen Huang defends the awards. He points out that the new GPUs perform significantly better. For the top model, that argument is correct. Taking inflation into account, the RTX 4090 isn’t all that oddly priced compared to the RTX 3090’s introduction.

A different story applies to the RTX 3080 cards. They are about $100 more expensive. In addition, today there is no question of a relatively entry-level model like the RTX 3070 at the time. The GeForce RTX 4080 (12 GB) seems to fulfill that role, making the price difference with the previous generation even more striking.

Higher costs

Huang says we’d better get used to such prices. “A twelve-inch wafer is a lot more expensive today,” he explains, referring to the production cost of the GPUs. “The idea that chips will fall in price is a thing of the past.” According to Huang, Moore’s law has become so obsolete and today we are in a different reality.

Huang is not the first to see Moore’s death. The question is whether the good man’s law will effectively remain buried. After all, the rule mainly concerns companies, their pace of development and pricing. If Nvidia wants to launch a GPU twice as powerful at the same price every two years, it can. The challenge is greater than ever, and it seems that the market is no longer expecting it. That gives Nvidia the chance to leave Moore behind. The question then is whether AMD will do the same, or whether it will use the momentum to profile itself.

The article is in Dutch

Tags: Nvidia blames Moore high GPU prices

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