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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.

Scott Herkelman Announces His Departure from AMD

Scott Herkelman, Senior Vice President and General Manager of AMD's Graphics Business Unit, has announced that he will be leaving AMD at the end of this year. As noted in his Twitter post, he spent last seven years at AMD, and launches three generations of RDNA graphics architectures. Scott Herkelman is a veteran of the industry, and was General Manager for GeForce at NVIDIA back in the day. After briefly switching to a start-up, he then joined AMD back in 2016 as Vice President and General Manager of Graphics Business Unit, the role he held for seven years while becoming Senior Vice President in 2022.

Scott said farewell to his colleagues in a brief Twitter post, and we are are certainly looking forward to see where he will be going next, as Scott is a PC and a gaming industry fan, through and through. Meanwhile, as spotted by Videocardz.com and according to AMD's own website, Jack Huynh will take over at the Senior Vice President and General Manager of AMD's Graphics Business Unit.

UPDATE: As pointed out by some comments and a couple of readers, Jack Huynh will not replace Scott Herkelman. Jack Huynh replaced Rick Bergman back in April as Senior Vice President and General Manager of AMD's Graphics Business Unit.
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Dec 18th, 2024 01:09 EST change timezone

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