News RTX 50-series GPU scalping extends to system integrators — over $3,000 for a RTX 5090

[Admin]

In a recent video explaining high RTX 5090 prices, the PowerGPU CEO revealed distribution-level scalping, which also impacts system integrators.

RTX 50-series GPU scalping extends to system integrators — over $3,000 for a RTX 5090 : Read more

 

[cyrusfox]

Law of economics on display, supply and demand, market is willing to bear these prices and Nvidia is not supplying anywhere near the demand. Until AMD or Intel can be competitive on the high end and be a viable alternative, Prices will remain extremely elevated. Nvidia earned it and continues to be out of eithers league.

 

[Jabberwocky79]

So, who is PowerGPU? I've never heard of them.

Edit: Did a quick search and see that they make prebuilts. The wording of the article made it sound like they are a GPU retailer/distributor or something.

 

[russell_john]

It says system integrator right in the title

 

[Jabberwocky79]

It says system integrator right in the title

I don't pay attention to big words when I'm speed reading 😛

 

[hotaru251]

again covid yrs showed companies that scalpers make bank & they decided "why are we selling cheap for them to make $ when we can just cut them out and make more profit?"

 

[russell_john]

Law of economics on display, supply and demand, market is willing to bear these prices and Nvidia is not supplying anywhere near the demand. Until AMD or Intel can be competitive on the high end and be a viable alternative, Prices will remain extremely elevated. Nvidia earned it and continues to be out of eithers league.

The problem is Nvidia doesn't make a penny more whether the finished product sells for MSRP or twice MSRP all Nvidia makes is the money for the main chip itself. In fact it loses them money in the long run because they sell fewer GPU ICs. Nvidia doesn't make or sell heatsinks or fans or MOSFET ICs or VRM controller ICs or inductors, resistors and capacitors nor do they make PCBs and VRAM ICs. ALL they make are the main IC and nothing more. Same is true for AMD

Why there is this false belief that Nvidia magically gets a cut of the final sales is ridiculous and shows a complete lack of knowledge on how this business actually works. No wonder these people are so easily fooled by populist politicians who are really nothing but con artists

 

[kaalus]

Stop calling it scalping. It's trading. Legitimate and lawful trading. Without these traders the GPUs would not be available at all, at any price. Thanks to these enterprising people you can still buy the 5000 series. If you are prepared to pay their real market price, of course.

 

[Kentmos]

Stop calling it scalping. It's trading. Legitimate and lawful trading. Without these traders the GPUs would not be available at all, at any price. Thanks to these enterprising people you can still buy the 5000 series. If you are prepared to pay their real market price, of course.

Go easy on the beer tonight, allright..?

 

[Trake_17]

It's starting to go beyond scalping. If someone bought up all the oil, stockpiled it to drive up oil prices, and then resell it, it wouldn't be called scalping anymore. GPUs are becoming a commodity and the impact of this behavior, like oil, is too important to be left expressly to open markets.

 

[Notton]

I'm under the assumption that for every $1 Nvidia loses in GPU sales, they make $10,000 in AI sales.

 

[hotaru251]

I'm under the assumption that for every $1 Nvidia loses in GPU sales, they make $10,000 in AI sales.

because they are an ai company they just havent changed name.

Nvidia is ‘no longer a graphics company’

Nvidia is an AI company more than it's a graphics company, and apparently that was an intentional shift from within the company.

www.digitaltrends.com

"In a moment of saying the quiet part out loud, Greg Estes, the vice president of corporate marketing at Nvidia, said: “[Jensen] sent out an email on Friday evening saying everything is going to deep learning, and that we were no longer a graphics company. By Monday morning, we were an AI company. Literally, it was that fast.”"

 

[mhmarefat]

Out of touch Nvidia bootlickers are blaming everyone but Nvidia. Morons who were saying real price of a 5090 is at least $25k, and Nvidia is basically a charity for selling these for $2k! Literally some have claimed that. Imagine being this out of touch.

Who showed the world that it is okay to be scalpers yourselves? Who started selling 4080 at $1200? Jumping from $700 3080? We woke up today, and decided 80 class GPUs are worth $1200 now! Their partners simply learned from the "best". Now they sell 5080 for $1000 to normilize this price increase.

Animals stop eating when they are full, but human greed is never satisfied as it is designed by God to chase infinity. So these money worshippers are never satisfied, not even with $6k 5090s.

Worst of all, we have tech reviewers shoving RT upon our throats, white washing Nvidia's ugly naked greed and blaming inflation for this disaster. PC gaming industry is on its death bed if the clown fiesta Nvidia started does not end.

 

[acadia11]

Don’t think it’s bearing the prices, there are so few cards around it really doesn’t matter what price they set you can’t get one. There is no supply.

 

[VizzieTheViz]

It's starting to go beyond scalping. If someone bought up all the oil, stockpiled it to drive up oil prices, and then resell it, it wouldn't be called scalping anymore. GPUs are becoming a commodity and the impact of this behavior, like oil, is too important to be left expressly to open markets.

Yeah except 1. we’re talking GPUs for videogames here which are considered slightly less important than oil and 2. there’s no one party buying up every GPU to resell at a profit so calling it scalping seems pretty correct.

 

[cyrusfox]

The problem is Nvidia doesn't make a penny more whether the finished product sells for MSRP or twice MSRP all Nvidia makes is the money for the main chip itself. In fact it loses them money in the long run because they sell fewer GPU ICs. Nvidia doesn't make or sell heatsinks or fans or MOSFET ICs or VRM controller ICs or inductors, resistors and capacitors nor do they make PCBs and VRAM ICs. ALL they make are the main IC and nothing more. Same is true for AMD

Why there is this false belief that Nvidia magically gets a cut of the final sales is ridiculous and shows a complete lack of knowledge on how this business actually works. No wonder these people are so easily fooled by populist politicians who are really nothing but con artists

Are you suggesting that Nvidia doesn’t have healthy margins on their GPU chips? While it's true that Nvidia primarily manufactures the GPU ICs, it’s important to recognize that their business model is based on selling these chips to partners who then add the additional components (heatsinks, VRAM, etc.) and assemble the final product. The value Nvidia provides, beyond just the raw chip, comes from their proprietary technology, software (like CUDA), and performance leadership, all of which are significant factors in the price and demand for the final product.


Also, while they don't sell the entire GPU, Nvidia’s dominance in the high-performance GPU market allows them to maintain strong margins on their chips. The overall pricing structure, including MSRP or higher, typically reflects not just the raw cost of the components but also the research and development investments, brand value, and the ecosystem Nvidia has built.


So, while Nvidia doesn't make all the components, they still capture a significant portion of the profit from the final product through their chips and the associated software and ecosystem advantages. Are you implying their margin on the GPU IC itself is negligible, or is the discussion more about the final product's inflated pricing?