News Nvidia's Jensen Huang says Blackwell GPU to cost $30,000 - $40,000, later clarifies that pricing will vary as they won't sell just the chip

[Admin]

High manufacturing cost of Nvidia's GB200 will make its list pricing particularly high. If you can get it separately.

Nvidia's Jensen Huang says Blackwell GPU to cost $30,000 - $40,000, later clarifies that pricing will vary as they won't sell just the chip : Read more

 

[ezst036]

Indeed, Huang stressed that the company would rather sell supercomputers or DGX B200 SuperPODS with plenty of hardware and software that command premium prices. Therefore, the company does not list B200 cards or modules on its website, only DGB B200 systems and DGX B200 SuperPODs. That said, take the information about the pricing of Nvidia's B200 GPU with a grain of salt despite the incredibly well-connected source.

I guess that kind of answers the one question I was having.

Hopper didn't come to consumers at retail that I know of, and it looks like Blackwell won't either.

 

[thisisaname]

I guess that kind of answers the one question I was having.

Hopper didn't come to consumers at retail that I know of, and it looks like Blackwell won't either.

May be Hooper will be the next retail card. New architecture for the Datacentre, then getting handed down to retail when it gets replaced with the new one?

 

[thestryker]

Hopper is very similar to Ada in design as they were done in parallel, so while we'll never see Hopper consumer cards there are Ada enterprise cards. All signs point towards Blackwell being a unified client/enterprise architecture like Ampere was.

As for pricing I assume whatever they say can be taken with a grain of salt like crypto era pricing. There's the price it should cost, and then the price it actually costs to acquire.

 

[ekio]

40k per gpu, when the entire wafer that contains multiple dozen of dies cost like 7k to produce…
This is a prime example of what pure dominant position abuse is lol.
When will they stop? When margins exceed 95 percent ?

 

[JTWrenn]

40k per gpu, when the entire wafer that contains multiple dozen of dies cost like 7k to produce…
This is a prime example of what pure dominant position abuse is lol.
When will they stop? When margins exceed 95 percent ?

Pricing your products high is not abuse. That is just competition. If they told customers you can't buy our product unless you sign something saying you will never buy a competitors, that would be abuse. This is just pure pricing based on supply and demand.

 

[Alvar "Miles" Udell]

It'll cost whatever they want because nobody can compete with them toe to toe, and just like in consumer cards if anyone can even come close they aren't going to compete with them on price, they're going to give a discount so slight as to not be a reason to use them.

Just like in consumer GPUs, if AMD -wanted- to they could force a price war and return GPU prices to normalcy, but instead they price them high and profit as much as possible at the detriment of consumers who are forced to buy one.

 

[The Historical Fidelity]

40k per gpu, when the entire wafer that contains multiple dozen of dies cost like 7k to produce…
This is a prime example of what pure dominant position abuse is lol.
When will they stop? When margins exceed 95 percent ?

The cost per wafer is $20,000 for TSMC N3

 

[Amdlova]

Abuse? Nops....
Tsmc will abuse the amd

 

[FoulFoot]

Yes, but can it run Crysis?

 

[Stomx]

The cost per wafer is $20,000 for TSMC N3

Let's estimate. If each wafer has 10x10 = 100 successful pieces the cost of each is $200. Each B200 has 2 cores so this is $400 total. Sold by $40,000 or factor of 100x more. This is the same sort of numbers like with AMD EPYC/Threadripper with its 8-core chiplets with 6B transistors each which cost $10 per chiplet to produce if estimate the same way but are charged $1000. Margin 99% !! You charge whatever you want if you are leader or monopoly

 

[ekio]

Whatever 20k, it’s an absolute scam.

 

[The Historical Fidelity]

Let's estimate. If each wafer has 10x10 = 100 successful pieces the cost of each is $200. Each B200 has 2 cores so this is $400 total. Sold by $40,000 or factor of 100x more. This is the same sort of numbers like with AMD EPYC/Threadripper with its 8-core chiplets with 6B transistors each which cost $10 per to produce if estimate the same way but are charged $1000. Margin 99% !! You charge whatever you want if you are leader or monopoly

Yeah that’s not how the math is done lol

 

[aero1x]

Prices are set by supply and demand. Am I missing something here when ppl seem outraged? Do you have any idea the cost of materials in an LV or Chanel bag (trust me I know thx to the Mrs).. its like a couple hundred bucks. These handbags are many thousands of dollars, and regular folks wait in long lines all over the world to pay those prices!! .. so what?!

 

[purposelycryptic]

Pricing your products high is not abuse. That is just competition. If they told customers you can't buy our product unless you sign something saying you will never buy a competitors, that would be abuse. This is just pure pricing based on supply and demand.

This is a prime example of what pure dominant position abuse is lol

Companies pricing their products extremely high when they are basically the sole player in the market is the reason regulations exist to stop monopolies from occuring.

They currently have no proper competitors in this space, and are making use of monopoly power to charge prices they would never be able to in a remotely competitive market. If this situation continues, they will likely be subject to anti-trust action. Precisely because the laws of supply and demand don't work when you have full control over the supply.

 

[Co BIY]

40k per gpu, when the entire wafer that contains multiple dozen of dies cost like 7k to produce…

7k a wafer after 10 Billion in R&D.

QUOTE="ekio, post: 23225909, member: 2871732"]
This is a prime example of what pure dominant position abuse is lol.
When will they stop? When margins exceed 95 percent ?
[/QUOTE]

Abuse ?

The only ones paying these rates are corps that plan to make money with them. Should Nvidia lower their prices so Bill Gates and Google can make more profit ?

The cards are just a tool. If someone builds a better tool or one at a better price the corps will go with them.

 

[The Historical Fidelity]

7k a wafer after 10 Billion in R&D.

QUOTE="ekio, post: 23225909, member: 2871732"]
This is a prime example of what pure dominant position abuse is lol.
When will they stop? When margins exceed 95 percent ?

Abuse ?

The only ones paying these rates are corps that plan to make money with them. Should Nvidia lower their prices so Bill Gates and Google can make more profit ?

The cards are just a tool. If someone builds a better tool or one at a better price the corps will go with them.
[/QUOTE]



20k a wafer plus BOM for the hundreds of other parts and labor needed to make the card, then add the $10B in R&D. Then add the software stack that Nvidia created for use with their hardware. Finally add at least 40% margin on top of that.

 

[e_fok]

Somewhere I read a wafer produces around 35 good h100 chips on average. Given the 2 dies you get at most 17 Blackwell from the 20k wafer cost.

Then don't forget the 8 stacks of hbm3e, those are quite expensive.

 

[tamalero]

40k per gpu, when the entire wafer that contains multiple dozen of dies cost like 7k to produce…
This is a prime example of what pure dominant position abuse is lol.
When will they stop? When margins exceed 95 percent ?

price of making does not account for the price of research, design, etc..

 

[TheHerald]

Whatever 20k, it’s an absolute scam.

Let's say I make a product that costs me 0.50 cents to produce, but I only have one. Demand is in the millions. Guess what the selling price will be when millions want it but I only have one.

 

[DiegoSynth]

Companies pricing their products extremely high when they are basically the sole player in the market is the reason regulations exist to stop monopolies from occuring.

They currently have no proper competitors in this space, and are making use of monopoly power to charge prices they would never be able to in a remotely competitive market. If this situation continues, they will likely be subject to anti-trust action. Precisely because the laws of supply and demand don't work when you have full control over the supply.

That's exactly what it should be (and I'm very much waiting for it). The issue is that when corruption rottens deep, regulations are not applied. Or they delay and water them down. They may come out later with a warning (only if people come up with torches and pitchforks), and give Nvidia another chance, and another...

I agree: something has to happen.
But if nobody (the powerful ones, or a very large amount of people) don't do anything, I'm afraid it will continue. Eventually we will all end up in consoles as the PC market will be extinct (not even mentioning plenty of professions and job positions).

 

[Argolith]

Let's say I make a product that costs me 0.50 cents to produce, but I only have one. Demand is in the millions. Guess what the selling price will be when millions want it but I only have one.

Scam price 😉

 

[TheHerald]

Scam price 😉

I guess it depends on your definition of "scam". If for you scam is me selling to the highest bidder, sure. What would you suggest, that I should sell it to the lowest bidder instead?

 

[The Historical Fidelity]

I guess it depends on your definition of "scam". If for you scam is me selling to the highest bidder, sure. What would you suggest, that I should sell it to the lowest bidder instead?

NO…you should donate it to the Ministry of Communistic Principles!!!! Just Kidding lol

 

[e_fok]

Let's say I make a product that costs me 0.50 cents to produce, but I only have one. Demand is in the millions. Guess what the selling price will be when millions want it but I only have one.

It costs 10B in R&D so if you only had 1 it costed you 10B to make it. The raw production of 0.50 cents is inconsequential.

You have to amortize the R&D over the number of items you intend to produce.

Say you can produce 1 million cards a year. It won't matter that the demand is 2 million and 1/2 your customers have to wait a year or more to get them. That 10B R&D is split over the 1 million cards for a cost of 10k each. Next year you may have another 10B in R&D cost to expense on what you can make and sell. Then there is the cost of memory and other support chips.

So when you are talking about margin you have to account for the 10k per card of R&D costs plus the cost of manufacturing plus the software and wages and office expenses etc.

Also the system oem that build the server has a markup as well as the cost for water cooling and other components to make the final server, which is what customers are buying, not individual cards.