this post was submitted on 28 Jun 2023
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I think that they're engaging in market segmentation. The AI guys need a lot of VRAM, and so Nvidia refrains from bumping VRAM on gaming cards, and charges an arm and a leg for the high-VRAM cards to extract more money from the people and companies doing AI work. That lets them capture both the gaming market at a lower price and the AI market at a higher price.
Because of that segmentation, I don't actually think that selling at a high price to the the AI market requires charging a lot for gaming cards.
Ordinarily, absent formation of a cartel to collude to keep prices high, competition would prevent that -- if a competitor could sell cards more-cheaply they can do so and take the marketshare, but AMD is presently playing catch-up in the AI field, so for now, Nvidia has a pretty free hand, as they're the only game in town for many.