Nvidia has reportedly slowed production of its RTX 40 series graphics cards, and shifted 4nm output to AI products like the H100, according to a report from sources at Moore’s Law is Dead. This step cannot be separated from the AI (artificial intelligence) boom or fever that has hit in the past year.
Nvidia’s RTX 40 series isn’t the most well-received generation of GPUs in recent memory. As the market for high-end GPUs continues to dwindle, companies have been quick to react to changing industry demands.
Following the boom or rise in popularity of ChatGPT and AI products over the last year, Nvidia has been enjoying the fruit of being one of the largest AI chip makers in the industry. This first step has seen the company’s valuation rise to over one trillion dollars.
YouTuber and analyst Moore’s Law is Dead claims that Nvidia is now looking to shift its reserved 4nm TSMC capacity to as many AI products as possible, meaning that production of RTX 40 series GPUs is “basically hibernating”, according to one source.
Another source reiterated that Nvidia is looking to shift capacity to its H100 chip, which is used most often for AI products. However, they further claim that Nvidia has “manufactured a year’s worth of Lovelace graphics cards”. As GPU sales were slower than anticipated, the company seems content with the lower supply of GPUs in the market. The first source continues: “…we are keeping the line open for every SKU, but this is because there is a contract with TSMC that is basically forcing us to do it”.
The RTX 40-series didn’t seem to get the response from gamers as the company was hoping for, so Nvidia started leaning towards AI to keep its products in high demand. Even so, according to the Steam Hardware Survey, the RTX 40 series is still selling well, and getting into more systems than ever before, with the RTX 4070 Ti leading the way in terms of market proliferation.
This is a smart move as Nvidia has been using consumer GPUs for a year now, they will avoid the oversupply crisis it faced last year, and still manage to maintain the price of its current line of graphics cards.
This likely won’t impact gamers too much, but if you’re looking for an RTX 40 series GPU, it might be a little harder to find now than before. Meanwhile, AMD is allegedly gearing up to announce the RX 7700 and RX 7800 in just a matter of weeks.
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2023-08-03 23:21:08
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