Nvidia losing money over defective GPUs

By Justin Mann on August 13, 2008, 12:00 PM
Nvidia’s recent struggles with GPU manufacturing are definitely taking its toll on the company. As a result of manufacturing defects and the inevitable fallout from it, it seems that Nvidia has gone from enjoying a few beautiful years on top to actually losing money recently. In particular, Nvidia saw a decrease in revenue for the second quarter of this year, resulting in a financial loss for the company.

In total, they lost over $120 million, and recent cuts in sales haven’t helped them out either. They outright admitted that they underestimated AMD, but nobody can really blame them for that.

Yesterday, it was speculated that there were manufacturing defects in the G92 and G94 chipsets, on top of the already known bad parts in the G84 and G86 series. Nvidia may have tried to avoid blame here and there, but ultimately it is coming down on them and they have been stuck with warranty replacements galore. Even if the newer chipsets are fine, it doesn't do anything to remedy the mass amounts of defective ones already sold.

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