GPU Price Hike: Nvidia and AMD Raise Prices Amid AI Arms Race

Nvidia and AMD are raising GPU prices by significant amounts, affecting both manufacturers and consumers. Nvidia is reportedly increasing its prices to partners by up to 30%, while AMD is following suit with a 10% price hike. These changes could lead to substantial increases in the cost of graphics cards for buyers.

The current state of the market has already seen significant price spikes, especially after the AI arms race began. The Radeon RX 9070 XT, launched at $600, is now selling for between $700 and $750 on Newegg. In contrast, Nvidia's GeForce RTX 5070 Ti launched at $750 but is currently listed on Newegg at around $1,000.

A low-end AMD GPU, the RX 9050, has been released with a 4GB version exclusive to certain regions, priced at just $280. This move is concerning, as many modern games do not scale well with lower VRAM systems. The price increase could make buyers pay Nvidia prices for AMD GPUs and almost double the price of Nvidia GPUs compared to their original MSRP.