'

Nvidia reportedly asks retailers to limit sales to GPU miners

In the age of mining GPU demand is through the roof

Nvidia reportedly asks retailers to limit sales to GPU miners

Nvidia reportedly asks retailers to limit sales to GPU miners

With the recent cryptocurrency mining booms, GPU pricing has gone through the roof, and the supply of graphics cards has been exhausted on an almost global scale. 

Typically, in a supply-constrained scenario, the simple solution is to build more units, as the sale of these additional products are usually a guarantee provided they can be brought to market fast enough. In this case, AIB partners are apprehensive about increasing their supply of graphics cards, as this increased demand will disappear if there is another cryptocurrency crash.

GPUs take a long time to manufacture.  First AIBs need to make orders, then companies like AMD and Nvidia need to order wafers from the likes of TSMC and Globalfoundies, these chips will then need to be packaged and sent to AIB (Add-In-Board) partners, who will then need to create new graphics cards. If AIBs make huge GPU orders and there is a cryptocurrency crash within their manufacturing time, those sales vanish, and the market will then be oversupplied.  This would not be a good situation for AIB partners like ASUS, MSI, Gigabyte and Sapphire. 

Nvidia has reportedly asked retailers to stop selling graphics cards to cryptocurrency miners, setting limits on GPU sales to a single user to ensure that more graphics cards are sold to gamers. Gamers have more brand loyalty than miners, making them better customers form Nvidia and their AIB partners in the long term, as miners are driven by profits and not by branding. Below is a quote from Nvidia that was made to Computerbase (Translated from German to English).


      For NVIDIA, gamers come first. All activities related to our GeForce product line are focused on our main audience. To ensure that GeForce gamers continue to have good GeForce graphics card availability in the current situation, we recommend that our trading partners make the appropriate arrangements to meet gamers' needs as usual. 


Nvidia cannot tell retailers how to run their businesses, making their comments more of a recommendation than a demand. The main thing that Nvidia wants here is to prevent substantial GPU orders going to miners, as a larger number of satisfied gamers is better for the company in the long term.  

Nvidia reportedly asks retailers to limit sales to GPU miners

 
In recent months we have heard reports of orders for 100+ GPUs hitting retailers and even claims that GPUs have been sent from manufacturers directly to large mining operations en masse. Regardless, it is unlikely that Nvidia's request will have much of an impact here, at least in the short term. 

You can join the discussion on Nvidia requesting retailers to sell more graphics cards to gamers on the OC3D Forums

«Prev 1 Next»

Most Recent Comments

22-01-2018, 06:23:16

AlienALX
Lip service, just so they don't look bad. They're loving this mining.Quote

22-01-2018, 06:58:50

tolagarf
It won't do jack! The problem isn't the small time miners who also game which might buy 1-3 cards. The problem isn't the retailers either because many of them have already been adopting the sell 2 per costumer rule for a long time already. No the problem is the factories who sell the graphics card in bulk straight out the backdoor directly to the mining farms, and those cards will never hit retail as a result. And we're not talking small amount here, more like Boeing 747's filled up with graphics cards...Quote

22-01-2018, 09:25:03

Warchild
Quoting Alien here since I am not starting a debate in quick news

Quote:
Originally Posted by AlienALX View Post
All I can say is "Thank god for the 1080Ti". Not because I want one, nor need one but because basically the miners are now using 1080Ti, which has pushed up the price making them not worth f*****g buying. For an extra £100 you can get a Titan, with more cores etc.

But yeah, even 1080Ti prices are ludicrous ATM. I bet Nvidia can't wait to drop the die size even more, more money for less silicon.

But you are right. Right now the best value card high end of the market is the Titan. Which is actually freakin' hilarious if you think about it.

I'm only surprised the price went down, not up !
Weird way to look at it.

And there is not a single point in time where the Titan has been good value for money. Not a single GPU above the 1060 has been good value for money. The market average is over estimated. Yet we still pay for them. Funny feeling when you get that need to have Day 1 gear isn't it

the only good thing I see right now which will hurt Nvidia and AMD is next year when the next gen cards come, all the miners will dump their current cards on the used market. With thousands and thousands of 1080tis up for grabs, the price will plummet for sure. This will make a 1080ti more worth while over next gen and so could hurt Nvidia's new gen sales as far as consumers go. Miners will still cough up the prices.Quote

22-01-2018, 09:29:14

AlienALX
The original Titan was "only" around £700. It enabled users to use DP without selling their house. So dependent of where it was situated it was great value for money. Same goes for the Black.. After that? yeah it becomes a bit muddy. Titan XM £939 no DP.

Quote:
Originally Posted by tolagarf View Post
It won't do jack! The problem isn't the small time miners who also game which might buy 1-3 cards. The problem isn't the retailers either because many of them have already been adopting the sell 2 per costumer rule for a long time already. No the problem is the factories who sell the graphics card in bulk straight out the backdoor directly to the mining farms, and those cards will never hit retail as a result. And we're not talking small amount here, more like Boeing 747's filled up with graphics cards...
And therein you have just answered the question of whether it is just lip service or not.

IE - people are not buying one, two or even three cards they are buying ten-twenty at a time. And are Nvidia going to stop that? are they F.

Like I said, it's pish for them to stop it dead overnight. But they won't. This is just lip service, meant to make every one hang in there.

Mining is killing gaming. They either need two factories and two production lines with two bioses (locked on one) or we are going to continue suffering.

And that's about that, really. Actions speak louder than words in this case.

WC - that is the logical way to look at it. Without the BS or any other nonsense.Quote

22-01-2018, 11:07:25

Korreborg
Well miners can be bad for Nvidia.
AMD is happy, as they sell cards they would not sell if it was a 100% gaming market.
Nvidia needs to sell their cards to gamers, as a stream of top-notch gaming cards puts them even more in the situation where; even though there is a more than worthy opponent (Intel vs Ryzen), they will still sell a ton of cards as people know them, and trust them.

On a danish facebook hardware trading site, there are still TONS of people telling people to buy an i3 or i5, because Intel is way better than AMD.Quote
Reply
x

Register for the OC3D Newsletter

Subscribing to the OC3D newsletter will keep you up-to-date on the latest technology reviews, competitions and goings-on at Overclock3D. We won't share your email address with ANYONE, and we will only email you with updates on site news, reviews, and competitions and you can unsubscribe easily at any time.

Simply enter your name and email address into the box below and be sure to click on the links in the confirmation emails that will arrive in your e-mail shortly after to complete the registration.

If you run into any problems, just drop us a message on the forums.