gpu crunch persists: ai innovation throttled, consumers face inflated prices

2025-06-05 nvidia

seoul, Thursday, 5 June 2025.
The global GPU shortage is still a major hurdle in June 2025. AI startups, like Korea’s Upstage, struggle to secure vital Nvidia H100 GPUs, hindering AI model development. Upstage, despite ranking first in the ‘Open LLM Leaderboard,’ faces innovation challenges due to GPU scarcity. Meanwhile, consumers grapple with inflated prices and limited options. The shortage not only impacts Nvidia’s revenue potential but also reshapes the consumer electronics landscape, as evidenced by frustrated users on Reddit seeking affordable GPUs.

upstage navigates shortage with samsung’s gpaas

Upstage has turned to Samsung Cloud Platform GPUaaS to mitigate the impact of the GPU shortage [1]. This adoption allows them to maintain stability, cost-efficiency, and rapid development [1]. Minsung Kim, Lead of Cloud Business and LLM Business Development at Upstage, refers to Samsung Cloud Platform GPUaaS as Upstage’s ‘reliable engine room’ [1]. Upstage’s AI-powered document processing automation has managed over 60% of the document volume processed by South Korean insurance companies since 2022, showcasing their reliance on computer vision and generative AI [1].

nvidia prioritizes ai chips, impacting gpu supply

Nvidia is reportedly reducing the production of GeForce RTX 50 series graphics cards to prioritize its new GB300 AI chips [7]. This strategic shift could lead to a 20% to 30% decrease in the supply of RTX 50 series GPUs [7]. The move reflects Nvidia’s focus on the more profitable AI chip market, potentially affecting the availability and pricing of its gaming GPUs [7]. The reduced supply may disproportionately affect the Chinese market initially [7].

cooling innovations emerge amid high gpu demand

As GPU density and performance increase, innovative cooling solutions are becoming crucial [3][4]. Shell has introduced a new coolant, Shell DLC Fluid S3, designed for direct cooling of CPUs and GPUs in data centers [3][4]. This propylene glycol-based solution can improve power usage efficiency by up to 27% compared to traditional air cooling [3][4]. The coolant also helps extend hardware lifespan by reducing metal corrosion [3][4]. Aysun Akik, VP at Shell, emphasizes the solution’s role in powering the future of digital infrastructure [3][4].

nvidia poised for significant revenue boost from ai data centers

UBS analysts suggest Nvidia could gain $20 billion in revenue from the ‘Star Gate’ AI data center project in Texas [8]. This data center is expected to deploy 400,000 Nvidia GB200 GPUs [8]. Oracle’s cloud infrastructure (OCI) stands to benefit as well, potentially generating over $2 billion in revenue from hosting 100,000 GPU clusters in the first phase [8]. The ‘Star Gate’ project, driven by OpenAI’s expanding compute needs, could reshape the AI infrastructure landscape [8].

consumer market feels the squeeze

The supply chain adjustments at Nvidia, driven by AI demand, are expected to keep consumer GPU prices elevated [7]. While new GPUs like the AMD RX 9060 XT are anticipated [2], supply constraints on Nvidia’s RTX 50 series may push consumers to consider alternative options [7]. The launch of the Nintendo Switch 2, also facing potential shortages due to high demand, highlights the broader challenges in the consumer electronics market [5][6]. The ongoing GPU shortage underscores the complex interplay between AI development, manufacturing capacity, and consumer accessibility.

Bronnen

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