The thirst for AI could push up GPU prices and leave consumers with less choice
Reports suggest that AMD is so focused on developing AI-related technology that the company is transferring time and resources away from gaming. The switch will not only mean that AMD will lose ground to NVIDIA, but also that there is likely to be an increase in GPU prices.
AMD is said to have scrapped plans to release high-end RDNA 4 generation of graphics cards -- so the Radeon RX 8800 and 8900 may well not see the light of day next year. The decision is believed to stem from AMD's desire to better compete with NVIDIA in the AI arena by refocusing its semiconductor resources.
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If AMD is willing to sacrifice some high-end market share to NVIDIA by concentrating instead on the mid-range, the impact on consumers could be huge. It would essentially clear the way for NVIDIA to dominate the high-performance gaming sector unchallenged. This not only means that there will be a reduced choice of high-end graphics cards, but it is will also leave NVIDIA free to hike prices.
The suggestions come courtesy of TechSpot which cites reports from various sources that say AMD is interested in staking claim to a greater portion of the AI market. It may seem rash to willingly give up the high-end gaming GPU market to a rival, but there is huge money to be made in artificial intelligence. The AI boom shows no signs of slowing any time soon, and AMD should be able to more than recoup gaming losses through AI server products.
But while AMD's apparent move away from top-tier is likely to see prices jump at the top end of the gaming hardware market, there will be increased focus on, and increased competition in, mid-range GPUs. For the average gamer, this is great news, but it remains to be seen how things end up playing out.