Nvidia CEO’s response to the EVGA controversy may surprise you

Jensen Huang, the CEO of Nvidia, spoke about the recent controversy over Nvidia and EVGA. As a reminder, EVGA has made a major exit from the GPU market, citing Nvidia’s treatment of it as the reason.

According to Huang, the situation was much less dire than it initially appeared, and Nvidia tried to shield its partners from the uncertainties of the current market.


Nvidia has had a turbulent week. First, EVGA announced it would stop making GPUs, and reports say Nvidia was the cause. Then the RTX 40 series was announced and the pricing of these GPUs left something to be desired. Finally, Jensen Huang himself confirmed that GPU prices would not fall again. Now Nvidia CEO Jensen Huang has responded to the EVGA controversies in a subtle, conciliatory manner.

As reported by Windows Central, Huang spoke to the press and spoke about both the EVGA issue and the export restrictions imposed by the United States government. Despite the difficulties, Huang seems optimistic that Nvidia has a good quarter ahead and that it will come out on top.

Huang confirmed that it was EVGA’s decision to part ways with Nvidia, but as he put it, it seems that’s been the plan for quite some time.

Referring to Andrew Han, CEO of EVGA, Huang said, “Andrew wanted to wind down the company and he’s wanted to do that for a few years. Andrew and EVGA are great partners, and I’m sad they’re leaving the market, but you know, he has other plans that he’s been thinking about for years. And that’s about it.”

Huang went on to say that “the market has a lot of great players,” so it will be well served even after EVGA leaves. EVGA’s complaints about Nvidia cover things like ignorance of architectural developments and pricing, and Huang also addressed these issues by saying Nvidia was trying to shield its add-in board (AIB) partners from current ones. market situation. This includes price increases and the difficulty of acquiring components given the various problems in the supply chain.

During the pandemic, lead times for placing a purchase order on a wafer went up dramatically; from 16 weeks to one and a half years. At the same time, the demand for new GPUs increased dramatically. As a result, Nvidia ordered a lot of inventory in advance, but now the market has slowed down. However, Nvidia did not burden its AIBs with the cost of the extra inventory it now has lying around.

Jensen Huang said, “We ordered the components anyway, so our AIBs are agile. And we carried the vast majority of inventory when the market was very hot. Our retail price was all exactly the same, never moved $1. Our component costs remained up, but we absorbed all the gains and we passed $0 to the market.”

Nvidia’s CEO also commented on the steps the company was taking to maintain its position and profits after market demand for GPUs fell: “The combination of the commitments [Nvidia] to write off about a billion dollars in inventory. And second, we’re putting several hundred million dollars into marketing programs to help the channel reset its price. I think between these two actions that we took a few months ago, we should be in a good place in the fourth quarter as Ada is ramping up. ”

Huang also doesn’t seem to be deterred by the recent trade restrictions imposed by the US government on GPU exports to China. Nvidia believes the majority of its customers will not be affected by the new restrictions and expects to be able to meet them while serving the Chinese market according to current demand.

As Nvidia’s CEO puts it, it sounds like the EVGA situation might be less controversial than it initially seemed. We’ve also heard reports that EVGA’s earnings were much lower than other AIBs, which may have made the decision easier. We’ll probably never know the full story, though, and it’s hard to say how much bad blood there could really be between the two companies.

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