The incredible growth of NVIDIA in recent months is related to Artificial Intelligence, we all know it. However, it seems that the financial takeoff of Team Verde is not without shadows: on the contrary, the increase in demand for GPUs for AI could worsen the supplies of gaming video cards and for consumers in general.
According to what WCCFTech colleagues explain, NVIDIA would not be able to keep up with its AI GPU orders. In particular, the recent orders of 100,000 GPUs for Elon Musk and Twitter’s AI and another 100,000 A100 and H800 chips by ByteDance (the company that owns TikTok) would have put Team Verde’s production capacity in crisis.
Some reports also indicate that the situation will not improve until early 2024, and indeed that in the next few months demand will continue to grow enormously, obviously without supply being able to keep pace with it. This way, the orders will end up piling up and, according to MyDrivers, NVIDIA will raise prices of its GPUs for AI. Meanwhile, other companies should begin to offer themselves as alternatives to what is currently a monopoly of the Santa Clara giant.
In particular, AMD will launch Instinct MI300X GPUs in the coming months, which promise 40% more VRAM than the 120GB of each NVIDIA H100 chip. Furthermore, NVIDIA itself would be working on “entry-level” H100 chips, intended for companies that need limited AI applications and equipped with 64 GB or 94 GB VRAM.
On this basis, it is possible that the Green Team review the production of its GPUsdedicating more production lines to video cards designed for AI and less to those for the sector consumer and for gamers. Obviously, everything will depend on when the long wave of AI ends: if it continues throughout 2024, the video card market could change profoundly.