News Nvidia Makes 1,000% Profit on H100 GPUs: Report

[Admin]

There are benefits to being the dominant player in the AI acceleration game. Those benefits apparently include orders of magnitude in profits.

Nvidia Makes 1,000% Profit on H100 GPUs: Report : Read more

 

[Order 66]

as if Ngreedia wasn't making enough profit already, the last thing they need is more encouragement to make overpriced gaming gpus. 🙁

 

[Deleted member 2950210]

as if Ngreedia wasn't making enough profit already, the last thing they need is more encouragement to make overpriced gaming gpus. 🙁

I could overlook the overpriced part, if the majority of its latest generation GPUs weren't so goddamn terrible.

 

[gg83]

Meanwhile you average successfull restaurant operates on a 5% profit. If they are lucky.

 

[Order 66]

I could overlook the overpriced part, if the majority of its latest generation GPUs weren't so goddamn terrible.

hypothetically, how much would you be willing to pay for the 4070 if it was able to beat the 3090ti?

 

[Kamen Rider Blade]

This is more reason to "HEAVILY Regulate" them.

 

[danlw]

I think the wider point is that gamers are now a niche afterthought for Nvidia and any other chip designers that make processors well suited to AI. If demand and ROI for AI processors is that high, the price will be equally high and gaming will no longer be the driver for innovation.

 

[Deleted member 2950210]

hypothetically, how much would you be willing to pay for the 4070 if it was able to beat the 3090ti?

I don't know. It all depends on how much better than the 3090 Ti it would be, i guess.

Let me put it this way: i live in Greece and, back in January, i paid close to 1.000€ for a 4070 Ti, which, according to Tom's hierarchy chart, is theoretically better than a 3090 Ti.

The card was garbage and its pathetic amount of VRAM made it even worse.

To say i regret buying it, would be an understatement, at best.

In June, i paid close to 2.000€ for a 4090 and i didn't mind one bit.

It's a beast of a card and one of the best purchases i've ever made. It's worth every bit of its penny.

To sum up, even though i'm far from being a rich guy, i'm not worried about expensive GPUs: i'm worried about the crappy ones.

 

[atomicWAR]

I don't know. It all depends on how much better than the 3090 Ti it would be, i guess.

Let me put it this way: i live in Greece and, back in January, i paid close to 1.000€ for a 4070 Ti, which, according to Tom's hierarchy chart, is theoretically better than a 3090 Ti.

The card was garbage and its pathetic amount of VRAM made it even worse.

To say i regret buying it, would be an understatement, at best.

In June, i paid close to 2.000€ for a 4090 and i didn't mind one bit.

It's a beast of a card and one of the best purchases i've ever made. It's worth every bit of its penny.

To sum up, even though i'm far from being a rich guy, i'm not worried about expensive GPUs: i'm worried about the crappy ones.

Agreed. I can when properly modivaited afford a 1600 dollar card (me and the wife both have 4090s). But my nieces and nephews we play with run much cheaper cards (gtx 1080, rtx 2060 etc for them). I worry they'll be strong armed out of PC gaming in a gen our two.

 

[Deleted member 2950210]

Agreed. I can when properly modivaited afford a 1600 dollar card (me and the wife both have 4090s). But my nieces and nephews we play with run much cheaper cards (gtx 1080, rtx 2060 etc for them). I worry they'll be strong armed out of PC gaming in a gen our two.

Yeah, no kiddin’! Even my 4090 has a hard time with some of the modern pc games. As much as I hate it, activating DLSS is inevitable in some cases.

 

[umeng2002_2]

hypothetically, how much would you be willing to pay for the 4070 if it was able to beat the 3090ti?

$700

 

[Order 66]

I don't know. It all depends on how much better than the 3090 Ti it would be, i guess.

Let me put it this way: i live in Greece and, back in January, i paid close to 1.000€ for a 4070 Ti, which, according to Tom's hierarchy chart, is theoretically better than a 3090 Ti.

The card was garbage and its pathetic amount of VRAM made it even worse.

To say i regret buying it, would be an understatement, at best.

In June, i paid close to 2.000€ for a 4090 and i didn't mind one bit.

It's a beast of a card and one of the best purchases i've ever made. It's worth every bit of its penny.

To sum up, even though i'm far from being a rich guy, i'm not worried about expensive GPUs: i'm worried about the crappy ones.

I am also worried about the crappy GPUs. I can't imagine nvidia releasing a decent 4050, another reason why I decided to spend a little extra on my build and get a 7700x and rx 6800.

 

[10tacle]

This is more reason to "HEAVILY Regulate" them.

The absolute LAST thing we need is Big Government bureaucrats in Washington DC and Brussels meddling into pricing mandates of the tech industry. A bunch of people who couldn't tell you what a video card does in a computer if their lives depended on it. Nothing would smother innovation faster. We vote with our wallets.

Speaking of which, the more I read stories like these as a long time Team Green person, the more angry I get. Specifically around how Nvidia's strong arming vendors almost certainly pushed EVGA out of the GPU market with the overpriced 4000 series - a vendor that had been a partner of Nvidia since 1999 mind you. That's unforgivably egregious to me and I'll speak with my wallet next time.

My overpriced 3080 Ti will be due for an upgrade next year after 3 years of ownership (that I was lucky enough to pay MSRP for in 2021 after winning a NewEgg shuffle purchase for one). It barely runs for my 4K needs now at solid 60FPS/60Hz locked in games like MSFS with high/max quality bar sliders. Nvidia has pushed me out as a 7x GPU customer since the Riva 128. My next GPU will be AMD. Here's to looking forward to 2024 and what AMD will bring on with their RDNA 4 RX series!

 

[Order 66]

The absolute LAST thing we need is Big Government bureaucrats in Washington DC and Brussels meddling into pricing mandates of the tech industry. A bunch of people who couldn't tell you what a video card does in a computer if their lives depended on it. Nothing would smother innovation faster. We vote with our wallets.

Speaking of which, the more I read stories like these as a long time Team Green person, the more angry I get. Specifically around how Nvidia's strong arming vendors almost certainly pushed EVGA out of the GPU market with the overpriced 4000 series - a vendor that had been a partner of Nvidia since 1999 mind you. That's unforgivably egregious to me and I'll speak with my wallet next time.

My overpriced 3080 Ti will be due for an upgrade next year after 3 years of ownership (that I was lucky enough to pay MSRP for in 2021 after winning a NewEgg shuffle purchase for one). It barely runs for my 4K needs now at solid 60FPS/60Hz locked in games like MSFS with high/max quality bar sliders. Nvidia has pushed me out as a 7x GPU customer since the Riva 128. My next GPU will be AMD. Here's to looking forward to 2023 and what AMD will bring on with their RX 7000 series!

I agree, it would be just like when the government tried to regulate video games in the 80s and nearly ruined the video games industry. I think it's funny that they considered Mortal Kombat to be violent back then even though there are much more violent games now. That's why I went for an RX 6800 even though 16 GB of Vram is overkill for 1080p, I would like my current build to last as long as possible.

 

[bit_user]

As surfers will tell you, there's nothing quite like riding a wave with zero other boards on sight.

Nice turn of phrase. Poetic, almost.

 

[bit_user]

Speaking of which, the more I read stories like these as a long time Team Green person, the more angry I get. Specifically around how Nvidia's strong arming vendors almost certainly pushed EVGA out of the GPU market with the overpriced 4000 series - a vendor that had been a partner of Nvidia since 1999 mind you. That's unforgivably egregious to me and I'll speak with my wallet next time.

I've long felt like Nvidia approaches business with the ruthlessness of an elite e-sports competitor or a prize-winning MMA fighter. I think, in spite all the misery it's caused AMD, it has made them a lot tougher.

As for EVGA, I love the only card of theirs I ever bought. I would've bought another, if they'd stayed in the business. However, I think Nvidia didn't single out EVGA - as far as I know, all of their board partners had to deal with the same stuff as EVGA. If EVGA couldn't take it, that probably suggests they were the weakling of the herd. Sad for them, but probably better for everyone else. And maybe an important signal to Nvidia that they need to ease up a little, while they still have any partners left.

 

[JamesJones44]

I personally don't like these articles where they add up the hardware component prices and proclaim massive profits based on that. They never account for R&D costs, MFG costs, software support, document support, physical support, RMAs, shipping, packaging, etc.

All of those costs add up and can make a 1000x profit turn into a 2x or even a loss quickly. Especially if you don't have volume. In Nvidia's case they have volume so I'm sure the profit margin is high, but I would bet once all costs are added in it's closer to 100x than 1000x.

 

[10tacle]

I've long felt like Nvidia approaches business with the ruthlessness of an elite e-sports competitor or a prize-winning MMA fighter. I think, in spite all the misery it's caused AMD, it has made them a lot tougher.

Yep but what I'm concerned about is AMD's future with dedicated GPU making, specifically in the high end where the market is a very small segment. Consoles continue to fly off shelves of which AMD makes the CPU/GPU for, and they are also of course deeply R&D involved in dedicated PC CPUs. In any event, Nvidia got the last of my money!

 

[malfor]

I don't know. It all depends on how much better than the 3090 Ti it would be, i guess.

Let me put it this way: i live in Greece and, back in January, i paid close to 1.000€ for a 4070 Ti, which, according to Tom's hierarchy chart, is theoretically better than a 3090 Ti.

The card was garbage and its pathetic amount of VRAM made it even worse.

Using a 4070ti here, with a 1440p monitor, its excellent, and am able to get 120FPS in all the games im playing, and enjoy DLSS 2.0, and have had zero software issue, calling it "garbage" is a bit over the top. If you are a 4K gamer, then maybe that's why you were disappointed with it because you state that you bought a 4090 to replace it. But some basic research before you bought the card would have gone a long way, you do seem to be aware of vram limitations, so its not clear why anyone would expect the 4070ti to excel at that resolution. Paid nearly $800 for mine, and it was an upgrade from a 2080 super, and its night and day better, but at 1440p.

 

[thestryker]

As for EVGA, I love the only card of theirs I ever bought. I would've bought another, if they'd stayed in the business. However, I think Nvidia didn't single out EVGA - as far as I know, all of their board partners had to deal with the same stuff as EVGA. If EVGA couldn't take it, that probably suggests they were the weakling of the herd. Sad for them, but probably better for everyone else. And maybe an important signal to Nvidia that they need to ease up a little, while they still have any partners left.

nvidia didn't single them out, but their ever increasing margins made EVGA's business model non-viable which means nvidia squeezed them out whether intentional or not. I don't think any other board partner outsources board manufacturing so the margins shouldn't be an issue for the rest. I can't imagine any of them ditching nvidia without a massive market shift.

 

[bit_user]

Mike Bruzzone, Camp Marketing

Hi, Mike! Perhaps you might like to put this in your signature. See:

https://forums.tomshardware.com/account/signature

 

[JTWrenn]

I hope we see more specialization in what those cards do that differentiates them from GPU's but I don't think it will happen. As such the GPU's will continue to be dragged up in price because people would be willing to by a severely handicapped AI machine at a much cheaper price for some applications. DLSS requires some of that and as such will keep pushing up GPUs and because everyone keeps snatching them up NVIDIA has absolutely no reason not to go ahead and crank up those prices.

Government intervention so people can play video games is well...silly. This is just a fun toy, very few people actually need this power for work and those that do are who is pushing the price not who is hurting because of it. We need gamers to start rejecting the high end and live on the last gen or before, or for GPU's to massively separate from AI machines for these prices to really get sane for gamers.

I doubt it will happen. Welcome to the new norm, and the reason consoles will be around for a long long time.

 

[Deleted member 2950210]

If you are a 4K gamer, then maybe that's why you were disappointed with it because you state that you bought a 4090 to replace it.

For the past 12 years or so, i had been a 1080p gamer and, believe it or not, i was determined to stay that way.

That was until i saw games like Resident Evil 4 remake, Atomic Heart and Far Cry 6, CTD repeatedly, due to 4070 Ti's insufficient VRAM.

That's what got me disappointed, or rather enraged, considering the fact that i had just spent 1.000€ on a new generation GPU.

If a card like 4070 Ti can't handle Full HD, i realised it was rather improbable it could handle all the games that were gonna be released during the next few months.

So i pulled the trigger, got rid of my 4070 Ti and bought the 4090 - which, in turn, made me wanting to have a 4Κ monitor.

4070 Ti, COULD have been a great card, IF Nvidia had taken things seriously and equipped it with 16 GB.

But, at 12 GB, it's just a pathetic GPU, not worthy of its money.

I only wish i had realised it earlier. But, hey, back in January, i had already gathered all the other pieces of my new rig, i could build a top class desktop so i thought "who needs a greater card? Why not settle for a 4070 Ti".

I suppose you could say my impatience got the better of me and i paid for it dearly.

 

[thestryker]

This is more reason to "HEAVILY Regulate" them.

Regulation isn't what stops profiteering though because it would be impossible to keep up with every product and if you set flat margins companies would just come up with creative accounting to get around it. You really need to crack down on stock market manipulation first (which should be done period) and then you have to figure out how to get around globalization (maybe something like taxation based on company wide profits derived from the percentage of revenue the region accounts for).

Of course any of this would require law makers who actually care about what's best for society as a whole. Honestly you'd probably have better luck wishing people would stop buying overpriced products and hoping that would impact the bottom line enough to anger shareholders.

 

[Peter Ferrari]

hypothetically, how much would you be willing to pay for the 4070 if it was able to beat the 3090ti?

4070 would never beat the 3090ti. Impossible for a 190w mid ranger to beat a prev gen card with absolutely no budget/specs/power limit. No next gen mid ranger would ever be designed to rival a prev gen 500w 1tb/s card. Just imagine 3090Ti was so off limits it required designing its own friggin connector. when gddr7 reaches 1tb/s on 256-bit, then xx90Ti will get 2-3tb/s on g7x