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Instead of pouring more money into OpenAI and Anthropic, Nvidia should invest more in expanding production capacity for the RTX 5000 series and future generatio
by tl2do 7mo ago
Instead of pouring more money into OpenAI and Anthropic, Nvidia should invest more in expanding production capacity for the RTX 5000 series and future generations. High-end consumer GPU availability is still constrained, especially for the RTX 5090, and street prices remain elevated. Nvidia should come back to the consumer side.
- chii 7mo agonvidia will come back to the consumer side when the AI side stops being as profitable. Right now, it still seems like the margins for AI hardware is way higher than the same consumer product would sell for.
- returnInfinity 7mo agoAnd why should a business do that? Limited chip production capacity be spent on most profitable ventures.
- tl2do 7mo agoI should admit this is partly my personal preference. That said, gaming has been a durable market for decades, and there’s a strong cycle where better chips enable better games, which then drives more demand for better chips.
- ravst3s 7mo agoThat same virtuous cycle works for their data center segment Every GW of Blackwell generates more revenue than the entire gaming business does in 1 year.
- fishcrackers 7mo ago[dead]
- bigstrat2003 7mo agoIf I were Nvidia, I would give more attention to consumer GPUs to hedge my bets. When (not if) this AI bubble pops, their AI customers will become worthless to them very quickly as they won't be buying more GPUs. And when that day comes, I would want to still have consumers to sell to, rather than have them all buying from AMD because I ignored them.
- bitfilped 7mo agoConsumer GPUs are too small of a slice of their revenue to matter to them anymore.
- bluescrn 7mo agoGaming created Nvidia And now Nvidia is destroying gaming
- armadyl 7mo agothe only way this argument works is if AMD somehow creates GPUs that run circles around nvidia and boxes them out price wise, and at the same them themselves don’t start prioritizing enterprise customers more. otherwise consumers will choose the best performing gpu possible, generally people don’t care about companies turning their backs on consumers in this way
- ChoGGi 7mo agoThey don't need to run circles, just be close enough for a good enough price.
- blitzar 7mo agoYou saying they should have gone all in on Crypto mining?
- wingmanjd 7mo agoDatacenter income for nVidia last quarter was something like 62B vs the gaming market of <4B. While not quite a rounding error, it feels like the gaming market is just too small for them to put more resources toward it for us consumer folks. https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-fourth-quarter-and-fiscal-2026 https://nvidianews.nvidia.com/news/nvidia-announces-financia...
- PenguinCoder 7mo agoIt is insanely stupid that '4B' with a B, is 'too small' of an operating space.
- chii 7mo agoThe absolute value is irrelevant - it's the opportunity cost that determines this. It doesn't matter if the consumer market is 4T, if the AI market is 60T!
- zmgsabst 7mo ago“I wouldn’t pick up $20 if there was $100 on the ground!” Most people would pick up both. These economic proclamations don’t seem to make sense, when applied to different contexts — which suggests what you’re saying might be folk wisdom rather than sound theory (and greatly over simplifying the problem). You’re also discounting ecosystem effects — gaming GPUs driving demand for datacenter and workstation GPUs as hobbyist experimentation turns into industrial usage. We don’t know what would happen if nVidia stopped suppressing the GPU market, because it’s never been tried — nVidia has always viciously undercut their own grassroots.
- reilly3000 7mo agoThis leaves an opening for Intel to get in the game. Their new lines have a pretty decent value proposition for mid-tier gaming. If they focused on the higher end they would could own it. There is massive latent demand because of the NVidia situation. It’s easier to make money from than the R&D to build the next Blackwell but there is just as much demand for local/private models on the prosumer level.
- eitally 7mo agoWhy would they do that? They launched the DGX Spark last year with multiple hardware OEMs selling flavors of the reference device (Dell, Lenovo, Asus). That contains a desktop-sized Grace Blackwell architecture GPU (GB10), and word on the street is that they're moving into laptops this year. Their market is the same market Apple is pitching the MacBook 5 Pro/Max, too: devs wanting local models. It's not currently a large market, but it's growing quickly. It makes far more sense for Nvidia to build hardware to service this market than to overly focus on their gaming lines. RTX GPUs are sell once. GB-containing consumer devices are "sell once, but then collect recurring revenue when the workloads those developers build hit production on a cloud somewhere."
- Shitty-kitty 7mo agoNvidia designs chips, it has no production capabilities. Most of their chips are produced by TSMC and memory come from SK Hynix.
- dev_l1x_be 7mo agoTheir model offerings are also need some love.
- TiredOfLife 7mo agoFabs are expensive, take decades to make and most important are very hard.
- mrweasel 7mo ago> Nvidia should invest more in expanding production capacity Not if they expect build out of AI data centers to slow down. Once both OpenAI and Anthropic goes public there's going to be a pressure on them to either turn a profit or at least have the stock price go up. One way that can happen, if subscriptions, government contracts and ads aren't working, is cutting back on cost. Cutting costs means doing more with the existing GPUs and datacenters and running them for longer. Even if the both companies can turn a profit, there's going to be a pressure to not spend on datacenters, if existing facilities can be pushed harder or used more efficiently. OpenAI and Anthropic going public is going to mean reduced spend on datacenters and GPUs.
- cmxch 7mo agoNo problem with that, even if it takes force.