EVGA Says NVIDIA Is So Hard To Work With, They’re Exiting GPU Market

EVGA Says NVIDIA Is So Hard To Work With, They’re Exiting GPU Market

Brand partnerships are rarely things that go without a hitch, but some collaborations are more onerous than others. EVGA has been making NVIDIA cards since the late 90s, but it seems that this is the end of the line – EVGA CEO Andrew Han has told Gamers Nexus that they cease all video card manufacturing operations. For reference, EVGA only makes video cards with NVIDIA.

For a company that generates 80% of its revenue from GPU sales, that’s a massive decision to make. But as Han told Gamers Nexus during the private meeting, the decision to stop working with NVIDIA was easy, because working with them was hard.

NVIDIA, it turns out, had a habit of withholding key information from its board partners until that same information is made available to the public, often onstage at a press conference. This includes things like pricing information of certain SKUs and GPU tiers. That’s right – board partners often don’t know how much margin EXACTLY they’re going to be making for a particular GPU until after NVIDIA CEO Jensen Huang announces the prices on stage.

If that wasn’t enough, EVGA also says NVIDIA’s undercutting of their products through their Founder Edition cards also doesn’t help matters. It’s so bad that EVGA is actually selling their high-end RTX 3080 and RTX 3090 cards at a loss, which is a huge problem obviously. By selling cheaper Founders Edition cards cheaper than EVGA, ASUS and their other board partners can sell, NVIDIA is essentially disrespecting its board partners on store shelves since no brand can go as low as them in terms of pricing since they rely on NVIDIA to provide the silicon for their GPUs.

So what happens to EVGA now that it’s done with NVIDIA? Well, Han says they’ll be staying in business, and will shift to making motherboards, cases, and power supplies. But moving forward without your main profit driver is going to be a challenge, and while EVGA said that they won’t be laying anyone off as a result of this decision, there are going to be a lot of employees who just won’t stick around now that the products they used to work on are gone. EVGA also stated that is not looking to work with either Intel or AMD.

As for their remaining stock of GPUs, EVGA will continue to sell RTX 30-series cards and they project that their stock will last until the end of the year. The company will also be holding on to a small amount of inventory to service warranty replacements.

 

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