The role of NVIDIA in the GPU and RAM crisis is reportedly not limited to just focusing on supplying AI data centers as opposed to the consumer market. New reports claim that NVIDIA has actually manufactured the GPU and RAM crisis by way of channel stuffing, which is a way for companies to make short-term gains because they’re supplying more product to their customers than they are actually able to use or get rid of.
In this case, NVIDIA is being accused of supplying AI data center and big tech companies like Meta, Google, and Amazon, with more GPUs to power AI than can be used. This practice has reportedly led to an artificial shortage, causing low supply and high demand for consumers, which led to higher prices because of the artificial scarcity.
NVIDIA helped manufacture the GPU crisis by forcing stock on big tech, with much of the stock sitting unused in warehouses
According to the reports, NVIDIA is said to have moved a majority of the silicon wafer allocation away from consumers, and instead used them for GPUs intended for AI data centers, which it then sent off to warehouses for the companies that bought them, knowing that they couldn’t be used.
The claims mention that NVIDIA has been doing this in order to keep its margins at record-breaking highs. Though the reports also mention that this could eventually lead to a bubble being burst, causing GPU orders from big tech companies to decrease by significant amounts. NVIDIA would then end up with way more supply than it can get rid of to these companies, and that may lead to more supply for consumers and ultimately lower prices. For now, prices remain high and customers are still paying the price, and while AI data center companies are catching a lot of the heat for the RAM and storage crisis, NVIDIA seems to have had a big role in all of it as well.
The post NVIDIA is claimed to have created the GPU crisis through channel stuffing appeared first on Android Headlines.
​Â
