Hi, this is Wayne again with a topic “Nvidia Acting Scummy Again”.
Nvidia might be leaning on board Partners to avoid Intel Arc battle, mage collaborations, according to Russian YouTube channel pro high tech, an inside source leaked that Nvidia is threatening to limit chip shipments or stop working with board partners that launch products based on Intel’s battle. Mage. This allegation is currently unconfirmed, but um is consistent with nvidia’s past alleged Behavior, such as pushing Partners in the GeForce program to use completely distinct, branding on AMD graphics cards before eventually backing down our discussion tactic. Is this a realistic our discussion question? Is this a realistic tactic coming from Nvidia and what’s the motive here? The motive is twofold: the motive is profit, obviously, but even more importantly, control Nvidia is one of those companies that is all about control controlling the messaging controlling the experience, and there are a lot of good things about Nvidia controlling the experience, because, if I was Nvidia Would I want who I consider to be my customer to be at the mercy of Asus software or an MSI guide, and I’ve even pick, I’m even picking relatively Big Board Partners here right? No, no, I wouldn’t want that and I’m sure Nvidia has been burned. Many a time would I want my product.
Would I want my product to be devalued by by Partners who are who don’t respect me and themselves enough to make margin? So you know this is one of those things I feel like I I’ve talked about before, but I haven’t talked about in a long time. It’S a very different cultural approach: businesses, Western businesses versus Eastern businesses to um sustainability, so Western businesses do have a tendency to protect their margins and I’m talking specifically about the technology industry. I don’t know anything about. You know the financial industry or insurance or whatever.
I don’t want to talk about any of that, because that’s not my expertise, but when it comes to Tech, Western businesses have a tendency to protect their margin to protect the value of their product, to protect their ability to continue to invest in r d. Also to protect their shareholders – let’s not kid ourselves, that’s a major factor, whereas what you tend to see with Eastern businesses is a bit of a race to zero. Well, we can slash the margin we’ll make it up in volume. We’Ve got the production capacity.
We have to use it whereas and neither is necessarily correct, but if you are a western business that values protecting the value of the product by not discounting it too much, and you know that your Eastern board partners are going to would slit each other’s throats for A nickel and are going to try to push each other out of business by running at zero margin for as long as possible, um you’re kind of sitting there going well. If none of you are going to make money anyway – and we know that the market can bear a higher price for the product, well then I’ll just take the margin, and I think that’s one of the things that has driven Nvidia over the years to take more And more and more and more of the profit away from their board partners and go okay. Well, there’s a consolidation effect because more and more board partners are dropping out whether it’s the bfgs of the world or the evgas of the world also said right, and so, if you guys want to make money by making no profit margin but doing lots of volume. Well then, this is great for you, because fewer and fewer companies are able to survive as a board partner and it’s great for us because we’ll just take more of the overall profit margin, um based on the MSRP, and you have no way of pushing the price Lower because you’re, not the one actually making any money and all the money you make is in, is in Kickbacks that we give you if you play nicely so Nvidia is all about making money.
Yes, but they’re all about control. So why do they not want their Partners building Arc battle? Mage products? Well, because all of a sudden a they will lose some money because there will be more battle. Mage out there and probably battle mage will be a more viable option than our uh than Alchemist. Has been and B because that will give their Partners leverage against them, leveraging the form of margin, leveraging the form of marketing and brand positioning and leveraging the form of not needing Nvidia.
So much that they’ll just bend over and take whatever Nvidia is giving. I don’t. I I’m pretty sure they’ve literally said this is not the plan and I don’t necessarily foresee it happening, but it would be pretty sick if EVGA re-entered the GPU Space by making, like whatever the third or fourth iteration of Intel cards, is or something like. As far as I’m concerned, it would be sick if EVGA survived yeah based on recent rumors, that’s not a given, but they have said that everything’s fine, then again, I I haven’t checked.
If there’s been any updates in the last week, let me do there. I mean now see if we can still buy lanyards yeah nothing since seven eight days ago it looks like I don’t know. I guess we’ll see anyway yeah. I would love to see.
Evga come back as an Intel board partner and I’d love to see an Intel. Um, an Intel GPU that is legit competitive Arc Alchemist is only competitive because Intel is just eating it on every single chip. As far as I can tell like. Those are enormous pieces of silicon compared to what AMD and Nvidia are shipping at those price points, and that’s where the cost is.
Thankfully Intel runs their own Fabs. So you know they can uh kind of play a little loose with the numbers, but I’m I’m also really glad that Intel hasn’t bailed because there were speaking of rumors about the exits yeah. There were a lot of rumors swirling about the Intel arc, graphics, Division and it looks like Nooks – are gone. Arc is still around.
I I I I forgot about that. When I heard about them killing nux, I was wondering if that’s where some of the lines kind of got crossed. I doubt it no yeah. I really doubt it.
Those are such different business units and a lot of the rumors were really specifically about Arc and because of things that were happening with Arc right, yeah yeah, I will give it to Intel. They adamantly and the whole time said they were not going to shut it down yeah, but that’s what everyone does. Google also was like about to launch new games on stadia and then we’re like see you later, but then that’s, Google and then just launched new top level domains and then killed their domain company yeah hilarious, yeah, .