During this week, NVIDIA introduced its new high-end graphics cards, the GeForce RTX 4080 and 4090. However, beyond their technical offerings, the conversation around GPUs has focused on their high prices. Consumers are not happy and the company knows it. It is for this reason that Jensen HuangCEO of NVIDIA, has come out to justify the high amounts that must be paid for the new generation.
But before continuing, first we must clarify one thing. Most of the complaints are related to the prices of the two variants of the RTX 4080, since the increase over the previous generation is one 29%. The RTX 4090, meanwhile, went up a 7% compared to the initial suggested price of the 3090. In the second case, the increase is not significant if we consider that the jump in performance, according to NVIDIA data, is remarkable.
However, given that the RTX 4080 is aimed at a larger audience, and that its prices hint at what we can expect from the RTX 4070 and 4060, it is normal that the market has shown its discontent.
But what does NVIDIA have to say about all this? In an interview with Market Watch, Jensen Huang said that the price of the RTX 4080 and RTX 4090 is justified by various factors. First of all, the new Ada Lovelace architecture, which represents an advance in terms of performance. However, Huang also brings up the issue of production, pointing out that the new cards are much more expensive to manufacture than the old ones.
“Moore’s Law Is Dead”
“A 12-inch silicon wafer is much more expensive today than it was yesterday, and it’s not a little more expensive, it’s a hell of a lot more expensive,” said the NVIDIA leader. Another interesting topic is that Huang considers that Moore’s Law no longer comes into play in current times.
“Moore’s Law is dead. The ability of Moore’s Law to deliver twice the performance for the same cost, or the same performance for half the price every year and a half, is gone. It’s completely gone. So The idea that a chip is going to get cheaper over time, unfortunately, is a thing of the past. Computing is not a chip problem; it’s a software and chip problem.”
Moore’s Law, proposed by Intel co-founder Gordon E. Moore in 1965 —and revised ten years later— mentions that Every two years the number of transistors in microprocessors doubles.. Obviously, this duplicity can translate into a higher power and, in other cases, in a decreasing cost of production.
From the words of the CEO of NVIDIA we can guess, then, that Gone are the low prices in the GPU market. At least when it comes, of course, to the high-end proposals.
It should be noted that the company’s vision could be different from that of other competitors. AMD is about to announce its new cards with RDNA 3, while Intel has just entered the market with the Arc range. We will see if both are capable of standing up to NVIDIA not only in performance, but also in prices.