NVIDIA Expected to Reduce GeForce RTX 50 Series Production to Boost AI GPU Manufacturing, Including GB300

NVIDIA is gearing up for the mass production of its cutting-edge GB300 AI chip, which has led the company to reportedly scale back its output of the GeForce Blackwell series GPUs. As we move forward, the implications of this decision are expected to impact the availability and pricing of graphics cards in the market.

NVIDIA to Reduce Production of GeForce RTX 50 Series by Up to 30% Amid AI Chip Focus

For gamers and enthusiasts following the GPU market, the current landscape may soon become even more challenging. NVIDIA’s apparent pivot towards AI chip production is not surprising, given that a substantial portion of the company’s revenue stems from its Data Center segment. This strategic shift is set to have significant repercussions for the GeForce series, particularly in the months ahead.

According to a report from a Board Channels leaker, NVIDIA is expected to slash the output of the GeForce RTX 50 series in China, contemplating a reduction of 20-30%.The company’s renewed focus on AI technology, particularly on the Blackwell series, which includes the established GB200 and the upcoming GB300 entering mass production next month, takes precedence over its traditional gaming GPUs.

Important Update: RTX 50 Series Supply Declines in June

As per insights from upstream manufacturers, the NVIDIA RTX 50 series has largely been released. However, stability issues in NVIDIA’s GPU production lines have resulted in notable supply shortages following the launch of the RTX 50 graphics cards.

The production operations for NVIDIA’s GB20X series are reportedly operating at maximum capacity. Production preparations for the new NV GB300 began in May and are anticipated to transition into mass production by late 2025. This prioritization of wafer production for the AI chips may inadvertently constrain the output for the RTX 50 series.

Emerging reports indicate a tightening supply of NV RTX 50 series GPUs, with shipments in June for the Chinese market declining by an estimated 20-30% compared to May. The underlying reasons for this supply reduction remain unclear.

– Source: Board Channels (Machine Translated)

The situation surrounding the GeForce RTX 50 series is already precarious in numerous regions, where obtaining cards at their Manufacturer’s Suggested Retail Price (MSRP) is proving nearly impossible. Consumers are often faced with premiums of 20% or more, and in some instances, prices can exceed 150% of the MSRP. Various elements have contributed to the limited availability and inflated costs of RTX 50 GPUs, and NVIDIA’s shift towards AI chips adds further strain.

Regarding the Blackwell chips, while the GB200 and GB300 are not explicitly banned in China, their market presence may still be impacted by the latest US export regulations. Particularly for the budget market, NVIDIA’s previous offerings, such as the H20, have been well-received. In response to these challenges, the company is expected to introduce alternatives like the RTX PRO 6000D, also known as B40, aimed at the Chinese market as a more affordable option.

In conclusion, with the reported production cuts in the GeForce RTX 50 series and the company’s primary focus shifting towards AI chip development, the landscape for gamers and tech enthusiasts appears to be evolving rapidly. The exact reasons behind these changes remain largely speculative, yet the push towards AI technologies signifies a transformative period for NVIDIA.

For more insights, check out the full details at Gazlog.

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