Nvidia is allegedly punishing customers with shipment delays, former AMD VP labels it...

midian182

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A hot potato: Nvidia is experiencing the kind of success most companies could only dream of right now, and it's all thanks to the generative AI boom. But not everyone is praising Jensen Huang and his firm. After a rival chip maker accused it of delaying orders of AI GPUs to customers who are courting other suppliers, a former AMD vice president has called Team Green "the GPU cartel."

On Monday, the Wall Street Journal published a report alleging that Nvidia could be delaying data center GPU orders to companies who are having meetings with rival AI accelerator firms. Hardware startup Groq, which creates AI chips for LLM inference, said Nvidia customers have to be secretive about acquiring or ordering AI acceleration tech in case Nvidia decides to delay their orders as punishment.

"A lot of people that we meet with say that if Nvidia were to hear that we were meeting, they would disavow it," Jonathan Ross, CEO of Groq, told the WSJ. "The problem is you have to pay Nvidia a year in advance, and you may get your hardware in a year, or it may take longer, and it's, 'Aw shucks, you're buying from someone else, and I guess it's going to take a little longer.'"

It's not just Groq making these claims. Former AMD vice president Scott Herkelman responded to a Tom's Hardware post on X with "This happens more than you expect, NVIDIA does this with DC [data center] customers, OEMs, AIBs, press, and resellers."

"They learned from GPP to not put it into writing. They just do not ship after a customer has ordered. They are the GPU cartel, and they control all supply."

Herkelman knows more than most when it comes to the graphics industry's two biggest players. Before running Team Red's graphics division from 2016 to 2023, he was general manager of Nvidia's GeForce business between September 2012 to May 2015.

During Nvidia's recent earnings call, CEO Huang addressed the issue of how its AI chips are allocated in order to avoid customers receiving more than they require or moving to rival products. "We allocate fairly. We do the best we can to allocate fairly, and to avoid allocating unnecessarily," he said. Elsewhere, Nvidia CFO Colette Kress said that Nvidia expects its next-generation products (I.e., Blackwell) to be supply-constrained due to demand outweighing supply.

Some might claim this is just a case of rivals being jealous of Nvidia's success – the company's total earnings of $22.1 billion for the quarter marked a 265% YoY rise, propelling Huang to 21st position on Bloomberg's Billionaires Index. But this isn't the first time Nvidia has been accused of unsavory tactics.

Also read: Nvidia AI GPU buyers are selling surplus hardware as supply constraints ease

In 2018, Nvidia's GeForce Partner Program (GPP) was established, purportedly as a way of working closer with OEMs and add-in board (AIB) partners on new products, product launches, and marketing. But it transpired that the program was anticompetitive and anti-consumer, hurting both consumer choices and partners' ability to do business with rivals like AMD and Intel. Nvidia was eventually forced to kill off GPP.

In 2020, Nvidia informed YouTube channel Hardware Unboxed (and by extension, TechSpot) that it would cease providing GeForce Founders Edition review units. The reason given was that presenters Steve Walton and Tim Schiesser did not sufficiently focus on the RTX ray tracing features of its graphics cards. Nvidia eventually apologized and reversed its decision, though this only came after a wave of public anger against the tech giant.

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Does Nvidia have double agents or insiders working for the competition or something? How would Nvidia know if a consumer is shopping around? How does a non disclosure agreement or meeting get leaked or known to Nvidia otherwise without a mole? Something seems compromised. 🤔
 
We already know that Nvidia cut back production to "correct pricing". Perhaps they screwed up those efforts and it has impacted a broader swath of their customer base than they intended.

Nothing would surprise me coming from Nvidia, however.
 
You would think after all these years and business cycles they would grow a group of executives that could show a better job in thinking .....
 
Does Nvidia have double agents or insiders working for the competition or something? How would Nvidia know if a consumer is shopping around? How does a non disclosure agreement or meeting get leaked or known to Nvidia otherwise without a mole? Something seems compromised. 🤔
Corporate espionage is not uncommon. And if it is a publicly listed company, they sometimes can find the information for free :)
 
Corporate espionage is not uncommon. And if it is a publicly listed company, they sometimes can find the information for free :)
True, but until we have concrete evidence, I will place this in the misinformation category that has its intended purpose of mass hysteria ( or keeping Nvidia in the endless news cycle. )
We have people crying that the politicians who most probably own Nvidia shares should do something. Also the source is Wall street Journal who's target demographic audience is also holding Nvidia Shares. Lets face it the shareholders want either the price to go down so they can buy more shares at bargain or the price to keep on goin up to improve their equity. The significant holders will attempt to use their platforms ( like WSJ ) to make the market move, the last thing they need is a flat line stock . Until proven this also has a direct affect on the consumer side from fear of retaliation (quickly make a million dollar order or else Nvidia will retaliate).
Hopefully Nvidia will make a public statement and plays nice from now on even if it is true.
 
Oh hey, Scott Herkelman is back again. If you thought 'jebaiting' himself out of a job might perhaps be cause for some reflection or introspection, well, he's just not that kinda guy. Looks like the PTSD of years 'shoulder to shoulder in the trenches' trying to defeat the 'final boss' has in no way subsided. I'll take this story with a few cubic ****tons of salt.
 
"In 2020, Nvidia informed YouTube channel Hardware Unboxed (and by extension, TechSpot) that it would cease providing GeForce Founders Edition review units. The reason given was that presenters Steve Walton and Tim Schiesser did not sufficiently focus on the RTX ray tracing features of its graphics cards. Nvidia eventually apologized and reversed its decision, though this only came after a wave of public anger against the tech giant."

You guys did blend RT and Raster performances in your review summaries at some point after this event, and ironically, you did exactly what Nvidia wanted.

Even today, you still recommend paying a premium for a 4080 over an XTX, which is ridiculous.
 
Oh hey, Scott Herkelman is back again. If you thought 'jebaiting' himself out of a job might perhaps be cause for some reflection or introspection, well, he's just not that kinda guy. Looks like the PTSD of years 'shoulder to shoulder in the trenches' trying to defeat the 'final boss' has in no way subsided. I'll take this story with a few cubic ****tons of salt.

He was working for Nvidia initially, so I think his comment have more ground than your damage control...

 
The fact that people keep buying from this despicable company just goes to prove that no one cares about ethics, fairness, and honesty anymore. It's shameful and sad. Shame on those of you who buy Nvidia. You are responsible for letting them get away with this.
 
The fact that people keep buying from this despicable company just goes to prove that no one cares about ethics, fairness, and honesty anymore. It's shameful and sad. Shame on those of you who buy Nvidia. You are responsible for letting them get away with this.
Spare us the false outrage. When you define "ethics" and "fairness" as "selling me anything I want at a I price I personally deem acceptable", you'll find that pretty much the entire business world fails to conform to this warped ideal.
 
Spare us the false outrage. When you define "ethics" and "fairness" as "selling me anything I want at a I price I personally deem acceptable", you'll find that pretty much the entire business world fails to conform to this warped ideal.
Nope. I will not. You're right to imply that no big company is truly ethical, but Nvidia is in a league of their own.
 
Nope. I will not. You're right to imply that no big company is truly ethical
Actually, I implied the opposite: the average big company is far more ethical than consumers who believe their wants and desires constitute laws of nature -- especially when those wants are as trivial as "MOAR Counter-Strike FPS!"

These AI chips are working to fight terror, design safer building materials, find new treatments for cancer, and cure genetic diseases -- and that upsets you, as their demand drives up the price you pay to play pretty new games. That's the very apotheosis of "unethical".
 
"In 2020, Nvidia informed YouTube channel Hardware Unboxed (and by extension, TechSpot) that it would cease providing GeForce Founders Edition review units. The reason given was that presenters Steve Walton and Tim Schiesser did not sufficiently focus on the RTX ray tracing features of its graphics cards. Nvidia eventually apologized and reversed its decision, though this only came after a wave of public anger against the tech giant."

You guys did blend RT and Raster performances in your review summaries at some point after this event, and ironically, you did exactly what Nvidia wanted.

Even today, you still recommend paying a premium for a 4080 over an XTX, which is ridiculous.
Even without RT, Nvidia scores more points and Watts/Framerate. something that AMD still can't beat. and other features that has better performance than AMD. Like NVENC, and Driver stability, CUDA. Those little features values a GPU. AMD is on the right path, but not yet on NVIDIA feature set baseline.
I don't really care of RT. but in overall perfomance per watts. AMD GPU are still a bit power hungry.
 
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