Nvidia says falling GPU prices are a story of the past

Nvidia just confirmed what many of us were already skeptical about — GPUs are expensive, and Nvidia plans to keep it that way.

During a Q&A session with the media, Nvidia CEO Jensen Huang veiled the mystery on RTX 40-series pricing, and there are insights No What are we looking forward to hearing.

Nvidia CEO Jensen Huang with the RTX 4090 graphics card.

Nvidia has only announced the GeForce RTX 4090, RTX 4080 16GB and RTX 4080 12GB, but not everyone was happy. Not the capabilities of these cards were questioned, but their value. The RTX 4090 will come with a $1,599 price tag, followed by the RTX 4080 at $1,199 for 16GB and $899 for the RTX 4080 12GB. These prices are pretty high, all things considered, but now it looks like this may be the new normal.

“The idea that the chip price is going to go down is a story of the past.”

During the Q&A session, Jensen Huang was asked about GPU prices. His reaction was very telling.

“Moore’s law is dead. […] 12 inch wafers are much more expensive today. The idea that the chip price is going to go down is a story of the past,” said Nvidia CEO Jensen Huang in response to PC World’s Gordon Ung.

Moore’s Law is the idea that there is a trend between PC performance and price, with performance nearly doubling every two years for half the price. Huang cited rising component costs and slowing spare power as the driving forces behind higher GPU prices.

Instead of Moore’s Law, Huang focused on price points and generational improvement. “The performance of Nvidia’s $899 GPU or $1,599 GPU from a year ago, two years ago, at the same price point, is monumentally better than our performance with Ada Lovelace. Better off the charts.”

From the response it seems many of us are already skeptical. As GPU shortages subsided, Nvidia and its allies were left with a greater supply of graphics cards. Once highly priced, these GPUs are now up for grabs at more reasonable prices, but they probably aren’t selling out as quickly as manufacturers might have hoped.

“The 3080 was, and still is, great value, and will continue to be,” an Nvidia spokesperson said at another briefing, noting that it was far from dead.

The introduction of the RTX 40-series steals the thunder from the RTX 30-series, but Nvidia still wants to sell these older (but still pretty cool) cards. The price of the RTX 4090 and two RTX 4080s is so high because it may prompt more people to buy one of the RTX 30 GPUs. Anyway, sad to hear confirmation that the price will continue with the upward move.

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