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Nvidia CEO’s response to the EVGA controversy might shock you

Jensen Huang, the CEO of Nvidia, spoke concerning the latest controversy concerning Nvidia and EVGA. As a reminder, EVGA has made a grand exit from the GPU market, citing Nvidia’s remedy of it as the explanation.

According to Huang, the scenario was a lot much less dire than it initially appeared, and Nvidia tried to protect its companions from the uncertainties of the present market.

NVIDIA CEO Jensen Huang on stage.

Nvidia has had a turbulent week or so. First, EVGA introduced that it might cease making GPUs, and stories say that Nvidia was the trigger. Next, the RTX 40-Series was introduced, and the pricing of those GPUs left a lot to be desired. Lastly, Jensen Huang himself confirmed that GPU costs wouldn’t drop decrease anymore. Now, Nvidia CEO Jensen Huang has responded to the EVGA controversies in a refined, conciliatory manner.

As reported by Windows Central, Huang spoke to the press and talked about each the EVGA problem and the export restrictions made by the United States authorities. Despite the difficulties, Huang appears optimistic that Nvidia has a great quarter forward and that it’s going to come out on prime.

Huang confirmed that it was EVGA’s determination to half methods with Nvidia, however the best way he put it, it looks like that was the plan for fairly a while.

Referring to EVGA CEO Andrew Han, Huang stated, “Andrew wanted to wind down the business and he’s wanted to do that for a couple of years. Andrew and EVGA are great partners, and I’m sad to see them leave the market, but you know, he’s got other plans that he’s been thinking about for several years. And so, that’s about it.”

Huang then went on to say that “the market has a lot of great players,” so it should proceed to be served nicely even after EVGA leaves. EVGA’s complaints about Nvidia cowl issues corresponding to being out of the loop on architectural developments and pricing, and Huang addressed these points as nicely, by saying that Nvidia was making an attempt to protect its add-in board (AIB) companions from the present market scenario. This consists of worth will increase and the issue of procuring elements given the assorted provide chain issues.

During the pandemic, the lead occasions to putting a purchase order order on a wafer went up drastically; from 16 weeks to a yr and a half. At the identical time, the demand for brand new GPUs rose dramatically. As a outcome, Nvidia ordered a number of stock prematurely, however now, the market has slowed down. However, Nvidia didn’t burden its AIBs with the price of the additional stock it now has laying round.

Jensen Huang stated: “We ordered the components no matter what, so our AIBs are agile. And we carried the vast majority of the inventory when the market was really hot. Our selling price was all exactly the same, never moved $1. Our component costs kept going up, but we absorbed all of the increases. And we passed $0 on to the market.”

Nvidia logo.

Nvidia’s CEO additionally elaborated on the steps the corporate took to retain its place and its earnings after the market demand for GPUs dropped: “The combination of the commitments that we made, which led [Nvidia] to write down about a billion dollars worth of inventory. And then secondarily, we put a few hundred million dollars into marketing programs to help the channel reset its price. I think between these two actions that we took a few months ago, we should be in a good spot in Q4 as Ada ramps hard.”

Huang additionally appears undeterred by the latest commerce restrictions that the U.S. authorities has instated in regard to GPU exports to China. Nvidia thinks that almost all of its clients should not going to be affected by the brand new restrictions, and it expects to have the ability to adjust to them whereas nonetheless serving the Chinese market in response to the present demand.

The manner Nvidia’s CEO places it, it sounds just like the EVGA scenario could also be much less controversial than it initially appeared. We’ve additionally heard stories that EVGA’s earnings had been a lot decrease than these of different AIBs, which can have made the choice simpler to make. However, we’ll doubtless by no means know the total story, and it’s laborious to inform how a lot unhealthy blood there would possibly actually be between the 2 corporations.

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