In the latest interview with VentureBeat, Nvidia CEO Jensen Huang said that manufacturing CMPs and making GeForce less attractive for crypto miners allows the company "to save GPUs for the gamers, and hopefully, as a result, the pricing will slowly come down."
When asked about the shortage problem in the semiconductor market and the issue with GPU prices going up, Jensen Huang said that Nvidia has not raised the price for GeForce despite the mind-blowing demand. Even though the GPU is being sold out at the speed of light (mainly due to the wave Ethereum mining) the price remains basically the same as the company has a manufacturer's suggested retail price. Jensen Huang explains that the end-market prices are rising because the demand is overwhelming.
Earlier this year, Nvidia nerfed their GeForce RTX 3080, RTX 3070, and RTX 3060 Ti as an attempt to make them less effective for crypto mining and thus control the problem of GPU shortage and price growth. Moreover, the company offers a product designed specifically for professional crypto mining, NVIDIA CMP HX.
"Our strategy is to alleviate, to reduce the high demand that is caused by crypto mining. We reduced the performance of our GPU on purpose. This allows us to save our GPUs for the gamers, and hopefully, as a result, the pricing will slowly come down." explains Jensen Huang.
Speaking of semiconductor shortage in the industry, Jensen Huang said that technology has changed dramatically. Huge powerful datacenters are required, smartphones are getting more advanced, so chips need to be more powerful and the industry needs more of them every day. The key problem is that demand exceeds supply, however, Nvidia CEO is feeling enthusiastic about the future of GPU manufacturing.
"As you saw from our last quarter’s performance, we have enough supply to grow significantly year over year. We announced a great quarter last year. Record quarter for GeForce, for workstations, for data centers. We have enough supply to grow and grow very nicely. But the world is going to be reshaped because of cloud computing, because of the way that computing is going." comments Jensen Huang.
Nvidia CEO noted that there are several factors that impact the growth of the company. Firstly, RTX is going to redefine computer graphics and everyone who has a GTX is going to switch to RTX eventually.
"There are 45 million designers and creators in the world and growing. They used to use GTX, but now obviously everyone wants to move to RTX so they can do raytracing in real-time. We have this pent-up demand because we reset and reinvented computer graphics. That’s going to drive our demand for some time." says Jensen Huang.