Wednesday, February 28th 2024
NVIDIA Accused of Acting as "GPU Cartel" and Controlling Supply
World's most important fuel of the AI frenzy, NVIDIA, is facing accusations of acting as a "GPU cartel" and controlling supply in the data center market, according to statements made by executives at rival chipmaker Groq and former AMD executive Scott Herkelman. In an interview with the Wall Street Journal, Groq CEO Jonathan Ross alleged that some of NVIDIA's data center customers are afraid to even meet with rival AI chipmakers out of fear that NVIDIA will retaliate by delaying shipments of already ordered GPUs. This is despite NVIDIA's claims that it is trying to allocate supply fairly during global shortages. "This happens more than you expect, NVIDIA does this with DC customers, OEMs, AIBs, press, and resellers. They learned from GPP to not put it into writing. They just don't ship after a customer has ordered. They are the GPU cartel, and they control all supply," said former Senior Vice President and General Manager at AMD Radeon, Scott Herkelman, in response to the accusations on X/Twitter.The comments reference the NVIDIA GeForce Partner Program (GPP) from 2018, which was abandoned following backlash over its exclusivity requirements. Herkelman suggests NVIDIA has continued similar practices but avoided written agreements. The Wall Street Journal report also hinted that major tech companies like Microsoft, Google, and Amazon are developing their own AI accelerators but downplaying them as NVIDIA competitors. This further points to an environment where NVIDIA is seen as controlling access to key technology for AI development. NVIDIA currently powers around 80% of AI development worldwide, giving it incredible influence over strategic technology. The accusations from Groq and Herkelman suggest the company is willing to leverage that market position aggressively to protect its dominance. NVIDIA has not officially responded to the latest accusations. But the reports have fueled speculation about anticompetitive practices just as regulatory scrutiny grows over the market power of tech giants. NVIDIA will likely face pressure to transparently address whether its supply allocation favors some customers over others based on relationships with rival chipmakers.
Sources:
The Wall Street Journal, Scott Herkelman (X/Twitter), via VideoCardz
130 Comments on NVIDIA Accused of Acting as "GPU Cartel" and Controlling Supply
Definitetion of lying by omission:
"Lying by omission is the deliberate act of leaving out important details so the truth is skewed or misrepresented. It's the counterpart of lying by commission, or using false direct statements."
This is called definitive evidence, not cherry-picking.dictionary.cambridge.org/us/dictionary/english/pedantic
Also Nvidia:
www.sec.gov/news/press-release/2022-79
If Scott weren't lying then it's TPU or HUB were lying :rolleyes:
www.techpowerup.com/img/YW49HDjvjgPkas5B.jpg
2080 Ti to Radeon 6800 was the worst upgrade I made in this century. So I pulled the trigger on a 4070 Ti for 650 dollars one year ago. Everything has been smooth sailing since. Cool, quiet, zero issues and great features across the board.
Wake me up when AMD can deliver.
@Mods Sorry for my part in this. I saw a redonkulas statement and it set me off.
www.businessinsider.com/nvidia-earnings-ai-chips-demand-jensen-huang-allocate-fairly-stock-2024-2?IR=T
Whatever "fairly" means.
Please take this post as a warning to stay on topic.
I think the lack of AMD laptops testifies to the nature of the relationship between Intel/AMD and the OEMs and how Intel's bribery of OEMs like Dell previously still deeply affects everything. For example, I believe that Dell doesn't have a single AMD XPS laptop option and this is 100% a reflection of Intel's influence on OEMs and while Intel might no be giving obvious bribes or payments, they go to these OEMs form a "development partnership" where Intel basically throws a lot of cash at them...does anybody here think that Dell, Asus, MSI, etc do not have the resources to develop a top of the line laptop model based on an AMD sku? While some may argue that this is merely "just doing business", the fact still remains that in the instance of laptops (arguably the most lucrative x86 market behind enterprise) the superiority of the product (CPU) is seemingly the LAST factor in determining what laptops get produced, and I'm sure the same can be said for pre-built Desktop PCs from OEMs as well.
True story: My coworkers are aware at my interest in computers, that I build them, and I've basically become the "computer guy" if anybody has a question or needs advice....well, just a few days ago, I was talking to a coworker about laptops because his wife is in the market for one, and I mentioned AMD. His perception of AMD was as though it was still 2013, that they were a cheaper, lesser option that somebody would only buy because they have to. This guy isn't dumb, and while he isn't an enthusiast, he also isn't completely ignorant, but I tried to parse out the basis for his perception and it was largely due to his observation that for example, when you're at Best Buy, the top of the line laptop models never have an AMD option, and when there are AMD options, they're usually budget tier. It really makes you wonder how much of Intel's business in the post-ryzen era has been based upon their cartelistic relationships with OEMs and the ability it has created to curate an image and perception in the minds of consumers that is divorced from reality.
Nvidia somehow convinced people that RT is some next level shit that we all need like cyberpunk is the game that we all need a 4090 for .
Once again;
Clearly shows AMD has huge issues in esport titles. 7900XTX uses way more power than 4080. More heat, more noise, more coilwhine. Everything you don't want.
And this is why 99% of competitive gamers use Nvidia.
prosettings.net/lists/cs2/
And watch that video. Shows 7900XTX draws 100-150 watts more than 4080 while delivering worse performance.
Gogogo ->
"AMD really need to fix this." Yep... AMD has tons of stuff to fix but they prioritize making CPUs and APUs, which is why they have succes right now.
Funny how people expect AMD to compete 1:1 with Nvidia which does solely GPUs and is a top 3 company worldwide in terms of market cap, while focussing on CPUs mostly... Not going to happen. Sad to break it to you.
AMD have exactly zero chance of beating Nvidia in the GPU space. All those AI money Nvidia grabs right now, will drip down into gaming space over the next many years. AMD is done for in the high-end market. Which is why Radeon 8000 series won't get any high-end SKU.
I have an AMD CPU, why? Because its great. Their GPUs tho, not so much.
AMD and Intel can battle for the low to mid-end market going forward.