The latest shortage of NVIDIA graphic processing units is making crypto miners grab any GPU they can get their hands on. NVIDIA has addressed this problem, saying that they will increase production to meet the current market demand.
Miners Purchased Millions of GPUs
NVIDIA, a California-based company, produce GPUs that are very sought after by both gamers and crypto miners because of their parallel processing power. This demand from crypto miners has cause a shortage in graphic cards, making it difficult for gamers to acquire the products, said the company’s co-founder Jen-Hsun Huang during an interview with TechCrunch.
“We’re sold out of many of our high-end SKUs, and so it’s a real challenge keeping [graphic cards] in the marketplace for games … we have to build a whole lot more … We’ve got to come closer to the demand of the market. And right now we’re not anywhere near close to that and so we’re just going to have to keep running,” noted Huang.
As a result, prices for the hardware skyrocketed well above the manufacturer’s suggested retail price. The hardware manufacturer is the leading producer of GPUs in the US, and has had so far a productive year despite the build-up of orders. The company’s price has increased 120% since the beginning of last year, this spike undoubtedly being related to the mining craze. When bitcoin was launched, it’s price was around $14.
In spite of three million GPUs bought by miners, resulting in $776 million dollars in sales across the industry, the production of graphic cards is declining. Overall GPU deliveries have been reduced by 1.5% in Q4 2017 alone and 4.8% since the beginning of 2017. Other branches of technology, such as machine learning and AI study, also depend on using efficient processors to deal with the swaths of data, but they also have been neglected by the industry.
Gamers And Developers Left Out
But in spite of the thriving sales, Jen-Hsun Huang is not completely happy. With miners ordering GPUs in bulk to form their rigs, gamers and developers seeking graphics cards are often left without any options.
“We have to build a whole lot more. The video supply chain is working really hard, and you know all of our partners are working around the clock. We’ve got to come closer to the demand of the market. And right now, we’re not anywhere near close to that and so we’re just going to have to keep running,” said the NVIDIA CEO on the matter.
Huang went on to explain that this demand stems from the decentralized nature of cryptocurrencies, adding that:
“At the highest level the way to think about that is because of the philosophy of cryptocurrency – which is really about taking advantage of distributed high-performance computing – there are supercomputers in the hands of almost everybody in the world so that no singular force or entity that can control the currency.”
Along with the increase in popularity for cryptocurrencies, it’s anticipated that the demand for top-notch hardware will grow as well.