NVIDIA's 5070 Ti Discontinuation: AI Demand vs. Consumer Gaslighting

NVIDIA's Discontinuation Strategy

• 💡 The discontinuation of the 5070 Ti and likely the 5060 Ti is attributed by NVIDIA to an inability to "meet demand."
• 🧠 This is presented as "gaslighting" by NVIDIA's leadership, with a significant disconnect between leadership and the passionate employees who work there.

The Real Demand Driver: AI

• 🚀 The actual unmet demand is for NVIDIA's AI GPUs, which are consuming vast amounts of RAM.
• ⚠️ Components and materials are being reallocated from consumer graphics cards to support the production of high-demand AI products and more 5090s.
• 📊 The 16GB of RAM from the 5070 Ti and 5060 Ti is being diverted to professional AI products, rather than scaling production of these consumer cards.

Consumer Impact and Market Dynamics

• 📈 The discontinuation of the 5070 Ti, a more consumer-friendly product, is seen as a move to prioritize NVIDIA's lucrative AI business.
• 💰 This strategy allows NVIDIA to continue maximizing profits from their AI inventory and customers, rather than catering to the consumer market.
• ⚠️ The 8GB variants of the 5070 and 5060 Ti are expected to remain due to their lower RAM requirements.

Broader Industry Trends

• 🤝 The speaker argues that AMD is also following NVIDIA's lead in prioritizing AI, despite consumer perceptions.
• 📉 NVIDIA's leadership, particularly Jensen Huang, has shifted focus from gaming to AI, with gaming revenue becoming a smaller percentage of the total.
• 🛠️ The trend towards reallocation of resources and potential supply chain issues is leading to a situation where consumers may need to become more self-sufficient in repairing their hardware, akin to "Cuba of graphics cards."