EVGA quits GPU business over disrespect to NVIDIA!

EVGA has just confirmed that it will be exiting the GPU business for good, citing disrespect and unfair behavior from NVIDIA!

Here’s what we know so far…

EVGA will not produce next-generation NVIDIA graphics cards!

EVGA has been a partner of NVIDIA for over 20 years and exclusively produces graphics cards based on their GPUs.

But on September 16, 2022, NVIDIA's long-time partner confirmed it was exiting the graphics card business for good in a terse statement… community forum post.

EVGA will continue to sell current GeForce RTX 30 series graphics cards and provide support to existing customers.

However, it will no longer produce the next-generation GeForce RTX 40 series (Lovelace) graphics cards.

The majority (around 78%) of EVGA's revenue comes from sales of its NVIDIA GeForce RTX graphics cards, which will eventually sell out.

But the company has no plans to lay off employees even after it finishes selling off its stock of RTX 30 series graphics cards. Instead, it will focus on other products like motherboards and power supplies, although it has no plans to expand into new product lines.

EVGA is not even considering the idea of ​​“working with Intel or AMD” to produce graphics cards. It will be leaving the graphics card business for good.

The California-based company currently employs around 280 people worldwide, and employees currently working on graphics cards will be reassigned to other departments, although it also expects some “attrition.”

EVGA quits GPU business over disrespect to NVIDIA!

While EVGA did not officially mention the reasons for its drastic decision, it was apparently because of the way NVIDIA disrespected them and behaved unfairly.

EVGA CEO Andrew Han noted that the profit margin on graphics cards is incredibly low and they make 300% more profit on power supplies. However, NVIDIA was a bad partner for them.

• NVIDIA did not tell EVGA the cost price of its GPUs before announcing the price of cards like the RTX 3080, making it difficult for EVGA to determine how much to charge for its own cards.
• NVIDIA sends journalists drivers for new graphics cards before sending them to EVGA
• NVIDIA is keeping EVGA in the dark about how many GPUs it would receive.
• NVIDIA is competing directly with EVGA with its 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 prevents its partners from selling cards below a minimum price for some models and above a maximum price for other models.

Han reportedly said that “the decision to stop working with NVIDIA was easy, because working with NVIDIA was very difficult.”

This discontent had been brewing for a long time and NVIDIA executives were well aware of it as early as April 2022.

Asked for a response to those allegations, NVIDIA spokesman Bryan Del Rizzo said:

Even though EVGA has been with NVIDIA since the RIVA TNT2 days in 1999, the GPU giant probably doesn't care as it can still count on its other “partners” to fill the void.

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