5 ms·

Its two of the worst yield chips. Its a lot more than a phone...

• varispeed 3y ago
  It's less complex as you don't have the size constraints and more freedom regarding heat and power, everything else is very much the same in principle. I don't believe it costs more than producing a phone. Only substantial costs may be when it comes to poor chip yield. But you think otherwise, I am all ears.
  • xcv123 3y ago
    By the same logic, the Nvidia H100 is just a phone and should cost a few hundred dollars (H100 is priced at $40,000 per unit and has fewer transistors than M2 Ultra)
  • buffington 3y ago
    Not all product pricing is determined by the cost to produce the product. Not all product pricing is intuitive to consumers. Products are frequently sold at a loss as well (google "loss leader") for various reasons - usually to ease adoption of a platform (Microsoft's Xbox 360 comes to mind, though my memory of it being a loss-leader might be apocryphal). Whether or not you believe it costs more or less to produce a chip than it costs to produce a phone isn't relevant. The price of phones aren't determined solely by the cost to produce phones. There are many more factors involved. Supply chain agreements, labor contracts, marketing, regulatory, tooling, distribution, market factors, etc, etc - those are just some of the things that influence a product's pricing. The factors considered when setting a chip's price shares those same concerns and probably more.