Post #74300

2025-12-17 17:00 UTC

Two ways to read this and I think both are somewhat true. Option one; They’re OPEC now. They set the supply, and you bring the demand because you have no other choice. This lets them push prices up, which pushes margins up, and that hopefully props up their insanely inflated share price a little longer. Option two; They’re well aware that demand is going to fall off a cliff soon. We’re already at “Nvidia is paying people to buy their GPUs” and have been for a while. The AI industry can’t afford to keep this train running, and even financial chicanery and circular dealing will only get them so far. Companies are building out data centres with zero plan for how to make any profit from them. When the GPUs they have age out, they’re not gonna buy more, they’re gonna go bankrupt (allowing the banks to sieze the mountain of now worthless three year old burned out GPUs that they used as collateral). And there’s not enough venture capital left for new data centre builds. The genAI financial engine is reaching its peak, and Nvidia doesn’t want to be stuck with a mountain of production that no one wants to buy.

Replies (5)

@NOT_RICK@lemmy.world 2025-12-17 17:22

Pretty astute. Maybe I can buy a half cooked gpu on firesale in a few years for a budget build… one can dream!

Open ##74375
@devolution@lemmy.world 2025-12-17 17:28

Let’s not forget AAA games are the games that use gpus the hardest gaming wise and they are bombing at record levels because they are deritive garbage and AA games are doing more with less. Add that to the AI bubble bullshit and it’s just a perfect storm.

Open ##74398
@SinningStromgald@lemmy.world 2025-12-17 17:34

I think it is just plain greed. The AI bubble has made NVIDIA mountains of money but they still want more. So they focus production on higher tier consumer GPU’S and their Pro series and give a middle finger to budget conscience consumers.

Open ##74423
@empireOfLove2@lemmy.dbzer0.com 2025-12-17 18:13

Option two is not correct, option one is correct. This announcement is specifically for consumer gaming GPU’s only, it does not affect institutional datacenter customers. This is Nvidia saying “thanks small fry, you were useful, but we’re leaving you behind now. Fight for the scraps.” Complete cartel behavior.

Open ##74554
@panda_abyss@lemmy.ca 2025-12-18 04:10

And sadly none of this hardware will be viable for consumers to use, even bought used.

Open ##76236