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> Nvidia has too much cash because of massive profits and has nowhere to reinvest them internally. Here's an idea: they could make actual GPUs used for games a
by moogly 11mo ago
> Nvidia has too much cash because of massive profits and has nowhere to reinvest them internally.
Here's an idea: they could make actual GPUs used for games affordable again, and not have Jensen Huang lie on stage about their performance to justify their astronomical prices. Sure, companies might want to buy them for ML/AI and crash the market again but I'm sure a company of their caliber could solve that if they _really_ wanted to.
- HDThoreaun 11mo agoWhy would they want to do that? The only sector that matter to nvidia is datacenter, its where 90%+ of their profits are. Making their consumer sector even less profitable just seems like a waste of time
- moogly 11mo agoHow about positive mindshare? Regular people not growing up absolutely hating nvidia's guts and only begrudgingly buying their products. Also ensuring that a pretty big industry won't die from becoming too expensive. Plus, diversification is good for when the bubble inevitably bursts. But that's long-term thinking and we can't have that. People give Huang credit for having had a long-term vision on AI, but it feels like he definitely has blinders on right now.
- senordevnyc 11mo agoThe consumer gaming card market is minuscule in comparison to their primary market now, to the point where worrying about diversifying there probably doesn’t make sense. Nor does it really matter whether consumer gamers hate them. That is likely to have zero effect on their core customer now.
- Eisenstein 11mo agoUnderestimating compounding and secondary effects, especially while rationalizing the abandonment of their core market and capability is one of the most famous ways that big companies provide evidence of their downward spiral. I can feel the MBA energy from here.
- senordevnyc 11mo agoCan you name any companies that suffered by switching focus away from one market where they dominate in order to also dominate a market that is 10x the size of the first market already, and growing faster?
- deleted 11mo ago[deleted]
- Eisenstein 11mo agoEvery specific situation is different, but the pattern I mentioned is easy to find. Here are three examples: RCA, GE, HP.
- rangestransform 11mo agoCUDA is where it is today because some years ago, people in grad school screwed around with CUDA on their personal gaming PCs
- creer 11mo ago> How about positive mindshare? Does anyone who can afford an nvidia card actually buy something else? Yes some people hate nvidia, but it's not like they have a hard time selling cards.
- Lord-Jobo 11mo agoI also just don’t understand, as someone with no business experience, how they aren’t just pouring all of that money into enhancing their production capacity. That’s very clearly their bottleneck here. Yes, I’m certain they are spending an astronomical amount on that already, but why not more? Surely paying more money for construction of more facilities still nets gain even if you run into diminishing returns? Instead they set up this whacko tax laundering scheme? Just seems like more corporate pocket filling to me, an idiot with no business knowledge.
- sleight42 11mo agoHedging their bets against a potential sudden downturn in consumption of their product, e.g., an AI bubble exploding? If they invest heavily in production capacity only to find that there is not commensurate consumption, then they'll have lost badly.
- lukev 11mo agoThe bottleneck is TSMC, who also make chips for almost every other hardware vendor. TSMC is indeed increasing their production capability as fast as possible, but it's not easy... chip foundries are extremely expensive, complex, and take serious expertise to operate.
- brookst 11mo agoIt’s called seeding the market. If they can accelerate the growth of potential customers, it will be more profitable than just increasing production to serve existing customers. Think of exponential growth — would you rather increase the base or the exponent?
- mvdtnz 11mo ago> as someone with no business experience, how they aren’t just pouring all of that money into enhancing their production capacity. That’s very clearly their bottleneck here. They know this madness can't go on forever. The last thing they need is to be left with billions of dollars of unused capacity when the bottom falls out of this very stupid bubble.
- 11mo ago
- rangestransform 11mo agoConsumers should already be glad that R&D for their products is being subsidized by OpenAI and Google