Pat Gelsinger, the former CEO of Intel, has recently voiced his opinion regarding NVIDIA’s pricing strategies for AI GPUs. He suggests that the current pricing model could lead to a reckoning in the market, where true value will eventually be assessed.
Gelsinger Critiques NVIDIA’s AI GPU Pricing Strategy
During a recent episode of the Acquired podcast, recorded at NVIDIA’s GTC 2025 event, Gelsinger offered a candid critique of NVIDIA’s approach to artificial intelligence. He argued that the company’s GPUs are excessively priced for AI inferencing tasks. In his remarks, he implied that Jensen Huang, the CEO of NVIDIA, lucked into his success in the AI sector.
The CPU was the king of the hill, and I applaud Jensen for his tenacity in just saying, “No, I am not trying to build one of those; I am trying to deliver against the workload starting in graphics.”And, then, he got lucky, right with AI.
Today, if we think about the training workload, okay, but you have to give away something much more optimized for inferencing. You know a GPU is way too expensive; I argue it is 10, 000 times more expensive to fully realize what we want to do with the deployment of inferencing for AI and then, of course, what’s beyond that.
Gelsinger’s comments underscore a critical perspective: NVIDIA has adopted a long-term vision for AI, and he commended Huang for remaining steadfast in his direction. Nevertheless, Gelsinger has also recognized that while NVIDIA surged ahead in the AI hype, Intel has struggled to maintain relevancy, generating considerably lower revenues within the same field.
Currently, Intel is facing challenges in the AI landscape, having shelved its anticipated “Falcon Shores”AI chip series. Its future vision now rests on the “Jaguar Shores”platform. Furthermore, Intel’s Gaudi GPU series has not performed as expected, especially when compared to powerful competitors such as AMD’s Instinct or NVIDIA’s Hopper, indicating a misalignment in the market.
Despite these setbacks, there is a glimmer of hope with Intel’s new leadership under Lip-Bu Tan, suggesting possibilities for innovation and future growth, although substantial progress remains to be seen.
In addition to his remarks on GPUs, Gelsinger also hinted at an emerging frontier for the tech industry, predicting that quantum computing may become a focal point by the end of this decade.
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