NVIDIA CEO Huang spoke about the price of the newly launched graphic cards to the press after the reveal of NVIDIA GeForce RTX 4090 and 4080 GPUs. He addressed the concerns and comments about the costliness of the new models of GPU.
He answered the question about bad business by saying that it is called marketing, and all the companies in the world do marketing. He also stated that “Moore’s Law is dead” and justified the gaming card pricing.
NVIDIA CEO Huang spoke about the chips, “Silicon wafers used to make chips’ not a little bit more expensive, it is a ton more expensive.” He also thinks that it will be a “pretty terrific Q4 for Ada,” as the company’s next-generation chip architecture was revealed this Wednesday.
NVIDIA expects a huge demand for gaming chips by using next-generation “Ada Lovelace” chip architecture. It was named after a 19th century English mathematician, normally considered the first computer programmer to work on a theoretical Analytical Engine by Charles Babbage.
NVIDIA’s $1,599 flagship RTX 4090 will go on sale on Oct 12, along with other cards like the $899 mid-tier 4080. There were many complaints circled online about the unexpected price hike. For the regular class chip, the 4090 is priced 7 percent more than the 2020 price hike.
High Price of NVIDIA GPUs Specs
On this unexpected price, NVIDIA CEO Huang gave an interview as Moore’s Law no longer works anymore, and NVIDIA GPUs will also get more expensive in the future. “Moore’s law is dead. And the ability for Moore’s Law to deliver twice the performance at the same cost, or at the same performance and half the cost, every year and a half is over. It’s completely over,” said NVIDIA CEO Huang. “The idea that a chip is going to go down in cost over time, unfortunately, is a story of the past.”
He further explained the rise in the pricing of the chips himself. He stated that the price was large (1,599$) for RTX 4090 because of the high prices of components.
NVIDIA CEO Huang further explained that the prices of the chips are getting expensive because they are more advanced and high quality than the previous RTX 3000 generation. The chip will pay double the performance than the previous, which followed Moore’s Law.
“The performance of Nvidia’s $899 GPU or $1,599 GPU, a year ago, two years ago, at the same price point with Ada Lovelace is monumentally better, off-the-charts better,” stated NVIDIA CEO Huang.“
NVIDIA CEO Huang said that they are selling the chips into the market a lot lower than what it’s selling out. He said that the price is lower than what’s selling out in the market. “And I’m hoping that by Q4 time frame, sometime in Q4, the channel would have normalized, and it would have made room for a great launch for Ada,” said NVIDIA CEO Huang.
NVIDIA CEO Huang stated that the high price for the chip is justifiable because the cutting-edge Lovelace architecture is necessary to support NVIDIA’s expansion in Metaverse.
He further said that the A12-inch wafer is a lot more expensive today and is not less expensive but more expensive. He expressed explicitly that Moore’s law is to deliver twice the performance at the same cost or the same performance at half the cost every year. He stated that this concept is over now as the world is advancing, and it is not possible to make the prices consistent as the story was in the past.
He hinted that if the technology needs to provide a better performance, then the prices need to be increased, which is justified. NVIDIA CEO Huang said, “Computing is not a chip problem; it’s a software and chip problem.”