Tuesday, December 26th 2017

NVIDIA Forbids GeForce Driver Deployment in Data Centers

NVIDIA recently updated the end-user license agreement (EULA) for their GeForce Software. There's one particular statement in the limitations section that caught our eye. And it reads: No Datacenter Deployment. The SOFTWARE is not licensed for datacenter deployment, except that blockchain processing in a datacenter is permitted. It seems that NVIDIA isn't too happy with data centers that utilize GeForce and TITAN graphics cards instead of the more expensive Quadro or Tesla cards. With this prohibition in place, data centers are forced to either invest in NVIDIA's pricier offerings or completely switch over to AMD. Data centers that are using GeForce products for cryptocoin mining are unaffected by this change in the EULA.
Clearly, NVIDIA isn't wasting any time and has already started to enforce their new EULA. Sakura Internet, one of the largest data centers in Japan, was the first to receive a notice from NVIDIA to stop providing servers with TITAN X products.

Here's the Google-translated press release from Sakura:

Sakura's dedicated servers High-firing series Quad GPU new provision temporary suspension
December 21, 2017 Dear customers, Sakura Internet Inc. Thank you very much for your continued patronage of Sakura Internet.

On November 30, 2017, the licensing terms for the use of NVIDIA Corporation's driver software have been revised and the license terms for the latest GeForce driver software. The provision of "prohibition of introduction to the data center" has been added. For details, refer to Article 2.1.3 from the following URL.
  • Japanese:
www.nvidia.co.jp/content/DriverDownload-March2009/licence.php?lang=jp&type=geforcem
  • English:
www.nvidia.com/content/DriverDownload-March2009/licence.php?lang=us&type=geforcem

In addition, we received written notice from NVIDIA Corporation. According to this notice, NVIDIA Corporation agrees to the above license terms on the GPU server service (Sakura's dedicated server high-fire series Quad GPU model) equipped with TITAN X provided by the Company, Based on the view that downloading the driver software for GeForce on the server is an infringement of copyright (reproduction right). We urge customers who have downloaded it on or after December 7, 2017 to stop offering the Quad GPU model.

We are currently considering NVIDIA Corporation's notice content with experts as well, but considering the possibility of inconvenience to our customers, we are considering the following "Sakura's dedicated server. We will temporarily suspend the new provision of the high-fire series Quad GPU model ".
  • Quad GPU (Pascal) model: TITAN X (Pascal architecture) installed
  • Quad GPU (Maxwell) model: TITAN X (Maxwell architecture) installed
TITAN X non- loading models (TESLA V100 model, TESLA P100 model, TESLA P40 model). We will continue to offer.

We are sorry to cause inconvenience, but we will do our utmost to make it possible for our customers to use our services with confidence. We sincerely appreciate your continued patronage.
Sources: NVIDIA, Sakura Internet
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90 Comments on NVIDIA Forbids GeForce Driver Deployment in Data Centers

#26
remixedcat
The more I look into this the more of a dick move this is! Also people should be able to do whatever they want with thier own freakin hardware! This is a facist socialist like move.
Posted on Reply
#27
Sir Alex Ice
How can a company prevent you from using their product - that you paid for in full - however you see fit?
Posted on Reply
#28
Dimi
remixedcatThe more I look into this the more of a dick move this is! Also people should be able to do whatever they want with thier own freakin hardware! This is a facist socialist like move.
Yeah because we should all enjoy large datacenter companies gobble up ALL of the CONSUMER oriented gpu's so prices will go even higher for regular CONSUMER grade video cards and then we can complain to Nvidia that our Geforce cards are expensive in stores right?

This is a good move from Nvidia.
Posted on Reply
#29
remixedcat
how can you say that's a good move when it will make hosting more expensive. duh.
Posted on Reply
#30
notb
remixedcatAlso people should be able to do whatever they want with thier own freakin hardware! This is a facist socialist like move.
No. You're buying a product with a license, which describes how you can use it.

If you have a philosophical issue with particular product being "hardware", remember that GPU is not just the electronics: it's also the software that makes it work. I guess you're fine with software licensing.
So yes, you definitely can buy a Titan V and use it as a paperweight (hardware), but to use it as an elevated calculator, you have to meet license limits.
remixedcathow can you say that's a good move when it will make hosting more expensive. duh.
But are datacenters using consumer-grade NVIDIA GPUs right now? I very much doubt that, but have no data to validate this guess.
@Solaris17 ?
Posted on Reply
#31
remixedcat
stop with the complacency attitude. it also perpetuates false scarcity as well.
Posted on Reply
#32
Dimi
remixedcatstop with the complacency attitude. it also perpetuates false scarcity as well.
These are GeForce cards intended for GAMERS. Prices would skyrocket if all datacenters would switch to consumer hardware. And no, hosting would not get cheaper, they would only make MORE profit. That is how companies work. They write that shit off as investments either way.
Posted on Reply
#33
DRDNA
In my opinion this is all because of what Green lost and what Red has gained. Green lost a lot in the hardware arena (one example of that loss is console GPU market) and this is an example of them trying to make up for some of the losses.
Posted on Reply
#34
Fluffmeister
DRDNAIn my opinion this is all because of what Green lost and what Red has gained. Green lost a lot in the hardware arena (one example of that loss is console GPU market) and this is an example of them trying to make up for some of the losses.
Erm, that want to stop people buying up loads of GeForce cards for data centers, not increase those sales.

Besides, their last quarter seemed pretty good to me.
Posted on Reply
#35
CrAsHnBuRnXp
londisteThese kinds of limitations are not limited to Nvidia. AMD will do exactly the same the moment someone tries to fill a datacenter with Vegas instead of WX9100s, MI25s or SSGs.
So then why is this such a huge deal just because nvidia did it first? Nvidia is within their full right to do this. They make quadro cards for a reason. Granted it may be time to offer the same things as consumer cards but nvidia wants the money.

Everyone here would do the same thing nvidia did if they were in their shoes.
Posted on Reply
#36
kruk
DimiYeah because we should all enjoy large datacenter companies gobble up ALL of the CONSUMER oriented gpu's so prices will go even higher for regular CONSUMER grade video cards and then we can complain to Nvidia that our Geforce cards are expensive in stores right?

This is a good move from Nvidia.
Yeah, good guy nVidia: they cut down the datacenter Titan V sales so gamers will be able to buy them at that sweet $2999 price tag (free shipping included) :D
Posted on Reply
#37
Dimi
krukYeah, good guy nVidia: they cut down the datacenter Titan V sales so gamers will be able to buy them at that sweet $2999 price tag (free shipping included) :D
The Titan V is NOT built for datacenters but made for AI Software and research developers.
Posted on Reply
#38
lexluthermiester
NdMk2o1oTranslated: We don't want you using consumer grade GPU's that are just as good as 5/10x more expensive workstation cards at certain workloads.
Time to use modded/3rd party drivers as it seems it's a software agreement that's being breached and not a hardware one, basically you can't use standard consumer Geforce drivers in an enterprise environment
notbNo. You're buying a product with a license, which describes how you can use it.
There's actually no legal recourse for NVidia to employ to prevent this. The reasoning behind that statement is simple, the hardware can not work properly without the driver software. Based on case law, both federal and state(in the USA at least) a manufacturer is not allowed to define how a particular product is used. Even though NVidia owns the copyright to the software, because the hardware it is intended for depends on that software, the software becomes attached to the hardware as a binding product. NVidia can not tell people, governments, business or corporations how to use their own property any more than Intel or AMD can tell the same groups that they can't buy or use Xeon or Opteron CPU's in whatever way meets their needs. NVidia can bluster all it wants. They DO NOT have the legal standing to back it up. This is a non-issue..
Posted on Reply
#39
TheoneandonlyMrK
john_It doesn't matter. We love Nvidia, we promote Nvidia, we buy Nvidia.
It doesn't matter to most of us but i don't know if I love any company , no im sure i don't.
Posted on Reply
#40
Jism
Telemetry, anyone?

How in earth does Nvidia know there are DC's deploying consumer cards in datacenter enviroments?

They might come handy in:

- virtuliazation
- GPU encoding / decoding, streaming (video website for example)
- Other sort of things where a GPU might come in handy

They are far more faster then traditional CPU's anyway. Nvidia is targetting to maximize it's profit and with Telemetry it just found a way. I really hope company's slowly move over to the red side since AMD is more easyer on that part. A sold card is a sold card.
Posted on Reply
#41
Dimi
JismTelemetry, anyone?

How in earth does Nvidia know there are DC's deploying consumer cards in datacenter enviroments?

They might come handy in:

- virtuliazation
- GPU encoding / decoding, streaming (video website for example)
- Other sort of things where a GPU might come in handy

They are far more faster then traditional CPU's anyway. Nvidia is targetting to maximize it's profit and with Telemetry it just found a way. I really hope company's slowly move over to the red side since AMD is more easyer on that part. A sold card is a sold card.
And i bet you'll be the first to complain that AMD/Nvidia doesn't have any gpu's in stock at your local hardware shop. It was already a crap show during the mining craze, imagine datacenters buying up all consumer gpu's. Its not what they are intended for.
Posted on Reply
#42
lexluthermiester
DimiIts not what they are intended for.
What they're intended for does not matter. NVidia doesn't have the right to do this. They have no legal recourse. It's an empty threat. AMD tried something similar with the Athlon XP CPU's being used in MP boards after slight modification. AMD whimpered about it, but could legally do nothing. NVidia can whine all they want, they are impotent to stop it.
Posted on Reply
#43
newtekie1
Semi-Retired Folder
remixedcathow can you say that's a good move when it will make hosting more expensive. duh.
Hosting machines don't use Titans. This won't affect hosting costs one bit.
JismTelemetry, anyone?

How in earth does Nvidia know there are DC's deploying consumer cards in datacenter enviroments?
Or, you know, it could be that the data center companies advertise machines with desktop cards right on their websites...
Posted on Reply
#44
Vya Domus
Kind of worthless , it's not going to be as easy as sending a notice to tell these guys to stop using a product which wasn't bound by any licencing agreement upon initial purchase.

Anyway , this is yet another move which confirms their actual priorities. Turns out investing all the cash they get from consumer products to R&D for datacenters and AI wasn't really 100% effective.
Posted on Reply
#45
notb
lexluthermiesterThere's actually no legal recourse for NVidia to employ to prevent this. The reasoning behind that statement is simple, the hardware can not work properly without the driver software. Based on case law, both federal and state(in the USA at least) a manufacturer is not allowed to define how a particular product is used. Even though NVidia owns the copyright to the software, because the hardware it is intended for depends on that software, the software becomes attached to the hardware as a binding product. NVidia can not tell people, governments, business or corporations how to use their own property any more than Intel or AMD can tell the same groups that they can't buy or use Xeon or Opteron CPU's in whatever way meets their needs. NVidia can bluster all it wants. They DO NOT have the legal standing to back it up. This is a non-issue..
Now this is a really weird interpretation or a weird law. Can you give me the article that says this explicitly? Or if not, do you have a court case to support it? Or at least a regulator's opinion or something?
And are you sure this applies to commercial use? I.e. does a company also have the right to use things however it wants? Or is it just the consumers?

What about typical software licenses? Microsoft, Adobe, AutoDesk, SAS and so on. If you're right about NV, what stops companies from using non-commercial software?
In most cases (Microsoft, for example) a fully featured free version is available for learning. Why are companies paying millions for commercial SQL Server or Visual Studio?
Posted on Reply
#46
R-T-B
DimiYeah because we should all enjoy large datacenter companies gobble up ALL of the CONSUMER oriented gpu's so prices will go even higher for regular CONSUMER grade video cards and then we can complain to Nvidia that our Geforce cards are expensive in stores right?

This is a good move from Nvidia.
This is NOT what's gobbling up GPUs.
lexluthermiesterThere's actually no legal recourse for NVidia to employ to prevent this. The reasoning behind that statement is simple, the hardware can not work properly without the driver software. Based on case law, both federal and state(in the USA at least) a manufacturer is not allowed to define how a particular product is used. Even though NVidia owns the copyright to the software, because the hardware it is intended for depends on that software, the software becomes attached to the hardware as a binding product. NVidia can not tell people, governments, business or corporations how to use their own property any more than Intel or AMD can tell the same groups that they can't buy or use Xeon or Opteron CPU's in whatever way meets their needs. NVidia can bluster all it wants. They DO NOT have the legal standing to back it up. This is a non-issue..
All they need to do is point at nouveau to dismiss your argument.
Posted on Reply
#47
Rhyseh
notbNow this is a really weird interpretation or a weird law. Can you give me the article that says this explicitly? Or if not, do you have a court case to support it? Or at least a regulator's opinion or something?
And are you sure this applies to commercial use? I.e. does a company also have the right to use things however it wants? Or is it just the consumers?

What about typical software licenses? Microsoft, Adobe, AutoDesk, SAS and so on. If you're right about NV, what stops companies from using non-commercial software?
In most cases (Microsoft, for example) a fully featured free version is available for learning. Why are companies paying millions for commercial SQL Server or Visual Studio?
Also keen to understand the answer to this. I believe that they do have legal recourse (else how do software companies enforce all their terminal services and server licensing stuff).
Posted on Reply
#48
notb
RhysehAlso keen to understand the answer to this. I believe that they do have legal recourse (else how do software companies enforce all their terminal services and server licensing stuff).
The short answer is: by buying software you're signing the EULA, which is fundamentally built around copyright (no other way, to be honest).
Posted on Reply
#49
Rhyseh
This is an update to the GeForce EULA. How is this different to any other EULA enforcement case?
Posted on Reply
#50
xorbe
That's bad when you manage to make Intel's antics look good.
Posted on Reply
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