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

[JTWrenn]

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.

They didn't get that monopoly by doing anything dirty or even using massive buying power though, so while they may have monopoly power to some degree charging a lot for their products is about the only right way to use it. They could completely stomp out AMD and Intel buy competing on price actually and that would actually be far more of an abusive way of using that power.

They are doing the only thing regulators actually don't go after monopoly power for...charging a lot. Only case where that is considered wrong is a monopoly on something people would literally die without...ie water or food during a crisis.

 

[Co BIY]

They didn't get that monopoly by doing anything dirty or even using massive buying power though, so while they may have monopoly power to some degree charging a lot for their products is about the only right way to use it. They could completely stomp out AMD and Intel buy competing on price actually and that would actually be far more of an abusive way of using that power.

They are doing the only thing regulators actually don't go after monopoly power for...charging a lot. Only case where that is considered wrong is a monopoly on something people would literally die without...ie water or food during a crisis.

They are also heavily reinvesting in R&D which demonstrates that they know they are not in a monopolistic position. They have several credible competitors (AMD, Intel, Apple, Qualcomm, plus Fifty dozen startups and whatever the Chinese's firms are brewing) chomping at their heels who would overtake them with any slack.

A true Monopolist charges you a high rate, but also cuts service and expenses. They don't need innovation because they have no competition to fear and would only take from themselves.