EVGA just confirmed that it is quitting the GPU business for good, citing disrespect and unfair behaviour by NVIDIA!
Here is what we know so far…
EVGA Won’t Produce Next-Gen NVIDIA Graphics Cards!
EVGA has been a long-time NVIDIA partner for over 20 years, and exclusively produces only graphics cards based on their GPUs.
But on 16 September 2022, the veteran NVIDIA partner confirmed that it was quitting the graphics card business for good in a terse community forum post.
EVGA will continue to sell the current GeForce RTX 30-series graphics cards, and support their existing customers.
However, it will no longer produce the next-generation GeForce RTX 40-series (Lovelace) graphics cards.
The majority – about 78% – of EVGA’s revenue comes from sales of its NVIDIA GeForce RTX graphics cards, which will run out eventually.
But the company does not plan to layoff its employees even after they finish selling their stock of RTX 30-series graphics cards. Instead, it will focus on other products like motherboards and power supplies, although it does not plan to expand into new product lines.
EVGA is not even entertaining the idea of “working with Intel or AMD” to produce graphics cards. It will quit the graphics card business for good.
The California-based company currently employs about 280 people worldwide, and employees currently working on graphics cards will be reassigned to other departments, although it also expects some “attrition” to take place.
EVGA Quits GPU Business Over NVIDIA Disrespect!
While EVGA did not officially mention the reasons for its drastic decision, it was apparently over the way NVIDIA disrespected them and behaved unfairly.
EVGA CEO Andrew Han pointed out that the margin on graphics cards is incredibly thin, and they make 300% more profit on power supplies. Yet NVIDIA was a bad partner to them.
- NVIDIA would not tell EVGA their cost price for GPUs before announcing the price of cards like the RTX 3080, making it difficult for EVGA to figure out how much to charge for their own cards.
- NVIDIA sends journalists drivers for the new graphics cards before sending them to EVGA
- NVIDIA keeps EVGA in the dark about how many GPUs it would receive.
- NVIDIA competes directly with EVGA with their Founders Edition cards. EVGA complained that it had to sell high-end cards like the RTX 3080 and RTX 3090 at a loss of “hundreds of dollars” to compete with the Founders Edition cards.
- NVIDIA blocks partners from selling cards below a price floor for some models, and above a price ceiling for other models.
Han reportedly said that “the decision to stop working with NVIDIA was easy, because working with NVIDIA was so hard”.
This discontent had been simmering for a long time, and NVIDIA leadership was well-aware as far back as April 2022.
When asked for a response to those allegations, NVIDIA spokesperson Bryan Del Rizzo said :
Even though EVGA has been with NVIDIA since the RIVA TNT2 days in 1999, the GPU giant probably couldn’t care less as they can still count on their other “partners” to fill in the hole.
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