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Nvidia reportedly halts GeForce RTX 5090 production in favor of AI data center and professional GPUs (www.tomshardware.com)
submitted 4 weeks ago by to c/pcgaming@lemmy.ca
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[–] 20 points 4 weeks ago (6 children)

It’s not speculative!

They have the orders in hand. If they provide the card, they get the money.

The people doing the speculating are the ones building the data centres, hoping the demand will be there long enough to pay off the costs.

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  • [–] 23 points 4 weeks ago

    Since much of their payment is in equity and cross-investment deals, it isn't quite that simple. If there's a market crash, the value of Nvidia's "payment" will plummet after-the-fact. So it's speculative in a large part.

    I don't say this just to be pedantic, I think it's important to understand how invested (literally and figuratively) Nvidia is in maintaining the AI bubble.

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  • [–] 1 point 4 weeks ago (1 child)

    Sorry I might have worded that weirdly, but I agree.

    I meant the AI market is speculative, and at the cost of an existing market of customers goodwill (who are only quite profitable), nvidia bought some speculative tech bros goodwill (who are currently incredibly profitable).

    Its certainly one of the business decisions of all time.

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