EVGA Abandons GPU Market Amid Strained Relationship with Nvidia
Nvidia's GPU market is dominated by several major players, including Nvidia itself. The company partners with other companies to sell customized versions of its GPUs. EVGA was once a prominent player in this space, but it announced in September 2022 that it would be exiting the market due to a lack of respect from Nvidia. According to EVGA, Nvidia wouldn't provide crucial information about its products ahead of time, including prices for the chips.
The relationship between EVGA and Nvidia was strained, with EVGA citing profit margins as low as 5% on GPUs. In contrast, other partners like Asus and MSI reportedly achieved 10% profit margins on the low end. The decision to exit the market wasn't solely based on financial considerations, however. EVGA's CEO, Andrew Han, said that it was a matter of 'principle' rather than finance.
Since exiting the GPU market, EVGA has significantly scaled back its operations. Its website now only sells power supplies and overclocking software, and many of its previous products are no longer available for purchase. The company's product catalog is also much smaller than it was before. Some speculate that EVGA may eventually go out of business due to the significant loss of revenue from no longer manufacturing GPUs.