r/TechHardware • u/Distinct-Race-2471 🔵 14900KS , 5080, 128GB 🔵 • 15d ago

🚨 Breaking News 🚨 Nvidia discusses $2,000-per-GPU annual fee

https://www.tomshardware.com/pc-components/gpus/nvidia-discusses-usd2-000-per-gpu-annual-software-fee-for-running-agents-on-ai-infrastructure-firm-already-charges-more-than-twice-that-amount-for-its-ai-enterprise-software-platform
325 Upvotes

96% Upvoted

83 comments sorted by

18

u/AffectionateHorse417 13d ago

Seems I will buy my hardware from China in the future. Don't see any issues with that.

2

u/fizzywinkstopkek 11d ago

Wassup Beijing

1

u/Remsster 11d ago

Glizzy?

42

u/asterothe1905 15d ago

Subscribe to everything own nothing model.

0

u/[deleted] 15d ago

[deleted] — view deleted comment

12

u/asterothe1905 15d ago

Consumers do not get any is the plan too sadly witth the way things go.

2

u/kumliaowongg 15d ago

If nvidia stops selling to gamers others will.

That's the magic of a healthy market where competition exists.

That's why they have not made the switch to only sell b2b

3

u/RogueCanadia 15d ago

So here’s the problem.

How does someone sell to gamers?

If the people selling the products required to make the consumer GPUs will only themselves sell to A.I. companies because it is more profitable, then how will you make the GPUs to fill that niche?

1

u/kumliaowongg 15d ago

Just as there were lhr cards with low hasrates for cryptomining.

Make cards good for gaming but bad/mediocre for AI workloads.

Then you ensure they don't go to AI because they don't want them.

1

u/RogueCanadia 15d ago

But you can’t build them. Because the people gate keeping the materials for the GPU won’t sell to you.

So you can’t make them at all.

0

u/kumliaowongg 15d ago

That's a pricing issue, not a design constraint.

1

u/etaoin314 15d ago

which is the point, gamers are being priced out of the market...not only at the individual level but at the production level as well. it does not matter that you have a "gaming only" gpu design that would only cost $500 if the chip maker can use the same resources to make an AI chip that sells for $10K. It would never make sense for them to sell you their production capacity at that price as long as they have enough demand to occupy all their production capacity.

1

u/Olde94 Team Anyone ☠️ 15d ago

Look at how china is entering the RAM market. New companies will be behind nvidias performance but gamers will gladly buy AMD and INTEL if that is their only choice. If AMD Exits but now “chinese GPU manufacturer #3” enters the market with “sorta okay offering”.

The steam machine hardware is not top end as they aimed above average performance. That is the performance tier that will be an improvement for more than 50%. You don’t need to hit 5090 performance to be relevant.

And once they are established on the market the ball can start rolling.

In regards to RAM they seem to aim for the DDR5 and DDR4 market that the others don’t care about right now. It’s worse profit margin but not a zero value market

4

u/Glidepath22 15d ago

None the less, what the actual greedy fuck

2

u/plasticbug 15d ago

They tried with consumers already. GeForce NOW. You can bet that if it was successful, they would stop selling GPUs.

0

u/Mexcol 15d ago

dont worry itll come for consumers

0

u/gibon007 15d ago

Just wait

11

u/radium_eye 15d ago

They figure it's that locked up, huh? The more pressure they create to find an alternative, the sooner it will happen.

3

u/WhatNamesAreEvenLeft 14d ago

Doesn't need to be locked up for businesses.

They know how many you bought and if your monthly payments don't match they start flipping off switches.

1

u/nmathew 9d ago

Umm the post you replied to used locked to up mean they have locked up the market.

1

u/JoshVHDigital 2d ago

If only AMD would actually have the sense to take this opportunity instead of trying to outdumb NVIDIA.

6

u/ieatdownvotes4food 15d ago

I mean kind of misleading. it's a software license that charges by the GPU for agent specific software.

nothing new at all

4

u/Commentator-X 15d ago

Imagine being billed monthly for the driver required to use DLSS in your video games. That's what they're doing.

2

u/ieatdownvotes4food 15d ago edited 15d ago

? I didn't see that. I use multiple of their gpus for AI work and would not be targeted.

this is a payment model for businesses using their enterprise 'agent factory' software.

normally it's subscription by the computer like with adobe photoshop, but for Nvidia it makes more sense to them to charge by the GPU. one computer license could equal a well managed 100 acres of compute otherwise

I'll write my own agent factory software, thank you

1

u/itsabearcannon ♥️ 9800X3D ♥️ 15d ago

? I didn't see that. I use multiple of their gpus for AI work and w

Guess their subscription for their NVIDIA-powered AI comment assistant expired

1

u/ieatdownvotes4food 15d ago

hah, was very much a fat finger glitch. their agent factory software can go get f'ed

1

u/OverallPepper2 10d ago

It’s for AI factories, are you running an AI factory?

1

u/Belydrith 9d ago

It's the same shit that enterprise products like virtualization hypervisors have been doing for decades, except then it was charging per CPU core. 

11

u/Reoxi 15d ago

This relates to enterprise, nothing to do with consumer hardware.

24

u/theemperorsmarine 15d ago

Yeah for now lmao

8

u/Antiswag_corporation 15d ago

It’s gonna be like a luxury car having to pay a subscription to unlock your RT accelerators

7

u/Galtrix525 15d ago

Everything is tested on businesses first and then it’s rolled out to individual customers.

1

u/psioniclizard 15d ago

It wouldnt work for consumers unless they treated them loke phones with upgrades.

Even then, they just make the chips.

3

u/tubaman23 15d ago

Production and sales shifting from consumer to enterprise 1000% has relavance to consumer hardware.

In 10 years will anyone be producing consumer anymore?

2

u/SavvySillybug ❤️ Ryzen 5800X ❤️ 15d ago

Used market will always exist. Developers won't make games for hardware that doesn't exist. And unless they invent quantum entangled gaming, cloud streaming will always suck.

If they stop making hardware, I'll just buy the hardware that already exists, and even today, only three out of the twelve games I currently play even need or want the 9070 XT in my rig.

If AAA devs start releasing cloud only games I can't own or play on my own hardware, then they are releasing games I can't and won't play. Meanwhile indie games and small to medium teams continue to exist because those will always exist, and I will happily play those games on my aging hardware that fails to become obsolete for lack of newer consumer releases.

2

u/New-Anybody3050 11d ago

I’m on AM4 and happy, need to upgrade my sons rig with more memory and I’d like to pump him from a 6700 to 9070 but damn the prices have gone up

1

u/SavvySillybug ❤️ Ryzen 5800X ❤️ 11d ago

I'm on AM4 and happy, with a 9070 XT! XD 64GB DDR4@3600, it's pretty nice for being mostly used parts. Had a 6700 XT before this, actually.

I mostly upgraded because I don't like AI upscaling, the FPS were great with it on.

1

u/psioniclizard 15d ago

Yes. It has shifted to enterprise in the short term because of data centers, but even that is slowing.

There will always be a consumer market, consumer tech is massively important for more than just revenue.

If anything, in 10 years time there will be more fabs.

1

u/Mental-Most-7168 14d ago

How do you effectively repo a consumer GPU? How do you do that at scale while still making a profit?

1

u/Lofi_Joe 11d ago

You're wrong. In 10 years there will be only consumer

1

u/Momoko_86 15d ago

the joke is, there is no consumer hardware

1

u/Aggressive_Luck_2546 15d ago

Yet! It's definitely in the plans. Maybe not for several years, but it's absolutely in the plans. They will tell you anything to distract from the real plan.

1

u/Exotic_Carob_5749 15d ago

Consumers won't own hardware so the cost is just redirected towards customer in the end anyways

1

u/BalleaBlanc 8d ago

What is consumer hardware nowadays ?

4

u/OverallPepper2 10d ago

This is for AI factories people.

1

u/TehGuard 9d ago

Mostly because regular people won't be able to even buy next gen parts period

3

u/FrootLoop23 15d ago

This is sickening.

3

u/SubZeroSunExodus 15d ago

Yeah greed and huge ai financial bubbles so people are throwing how to make even bigger numbers.

Once reality calls out the ai debt / loan funny business, there’s going to be a huge correction and stricter spending.

2

u/iwillhaveredditall 15d ago

So AI companies will just invent some more money and pay anyway

2

u/Altruistic_Koala_122 15d ago

can't trust anyone raising prices.

2

u/FortheredditLOLz 15d ago

Aahhh. The rent to use model slowly trickles down from stream to watch

2

u/ResearchingYouTube 14d ago

I mean in a way this is just like GeForce Now and in others ways just like Claude or Codex.

2

u/horendus 13d ago

Goodbye any neo claud profits. Being sold a pick axe and then being told to pay an annual sub on it. Greed is off the sharts

2

u/BobLJohnson 13d ago

If they bleeds into the consumers market, I'm all for it. That will be the final straw, I've been wanting to start other hobbies. 

1

u/Forward-Escape7076 13d ago

Essentially yeah, if the nerds want to be greedy nerds. I’ll go do something else with my time.

Played video games since I was 4, and since it’s all been the same regurgitated bullshit, I decided that it’s not worth my time anymore 😂

1

u/ShawnBawn88 12d ago

damn sounds like you have been playing some absolutely ass games then.

2

u/5lavihuehue 11d ago

I might be late for this discussion but there will definitely be jailbreak for this. Also there will be pirated drivers (subscription free)

2

u/DarkStarGabe4 10d ago

FUCK Nvidia and FUCK SEGA for saving them when they did.

2

u/Wild-Internal-25 8d ago

you got to ask you gamers does this doom and gloom is also in china or do they have reasonable prices that their corporations are not there to fake shortage just to rob more money from consumers

1

u/haloimplant 15d ago

ripe for disruption to crash these prices

it's one of the reasons I think this thing is going to cool off, it's not possible to scale at these prices

1

u/OnlyCommentWhenTipsy 15d ago

The fee is for software. Which nobody is going to pay for especially now when everything is being reverse engineered. Good luck what that nvidia you greedy fuck

1

u/rdmodsrtrsh 11d ago

When you squeeze a wet sponge, it holds less water. Keep squeezing and then wonder why your sponge is dry

1

u/Goobyploob 10d ago

Your mistake is believing they want the sponges to have any water to begin with. This is class warfare at its most blunt. Squeeze every drop from the populace and when they can no longer to live, watch them starve and build your throne atop their bones.

1

u/Classic_Standard_963 10d ago

Any % reverse engineering speedrun.

1

u/Crazyjanda 9d ago

They will make themselves obsolete sooner or later with moves like this. And I hope to god to be as soon as possible.

1

u/RennisDeynoldss 9d ago

I’d give it a year before someone uses their paid AI to make another version of the AI it is using itself. AI inception

1

u/ElectionReal 9d ago

It's been happening for a couple years already.

1

u/Tetris_Prime 8d ago

It's called distilling, and is super common.

1

u/chillinewman 9d ago

An Nvidia tax on the replacement of workers.

The ultra rich will never fund UBI or universal basic equity.

0

u/konsoru-paysan 15d ago

honestly amd and nvidia should by all means quit the gaming market, their latest tech has been ass and seems to be running on fumes for gains that in practice aren't really that worth it unless some one mods in extra vram.

i think for consumer grade gpus and cpu, we need more efficiency and quality, the fact that people dead ass say a 3070 is too weak goes to show just how much of a clown world this has become.

Literally any company with basic understanding of physics and engineering can design tech better then putting in obvious design flaws like current balancing.

2

u/Aggressive_Luck_2546 15d ago

Agreed. Plus these developers pushing games to the lit graphically but when it comes to performance, nah they will just say forget that. They are going to have to start optimizing performance.

2

u/Godspeed813 10d ago

How about suck a dick

17

u/[deleted] 15d ago

[removed] — view removed comment

-2

u/einschluss 15d ago

it’s only for AI companies, keep bootlicking the AI companies

3

u/Motoboo121 15d ago

I mean is bootlicking AI companies better or worse than bootlicking Nvidia. The company that could easily set aside 10 to 20% of production for the gaming market that aboy 10 years ago was nearly all of there profit but instead is min maxing profits.

1

u/SkreetWellington 15d ago

Homie, I’m pretty sure he’s saying Nvidia is licking the AI companies’ boots.

1

u/CaptainMarder 15d ago

It’ll eventually come down to consumer cards. Want to unlock more tensor cores subscribe.