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Jen-Hsun Huang: NVIDIA focuses on players — mining won’t bring much revenue to the company
NVIDIA CEO Jen-Hsun Huang at the quarterly reporting conference could not ignore the topic of mining. The company’s management still does not have the ability to clearly separate revenue from sales of video cards to miners and gamers, but at least it is taking measures to separate these segments. Mining in the future will not greatly affect the company’s business, according to its founder.
Image source: NVIDIA
The very mention of the revenue in the range from $ 100 to $ 300 million, which NVIDIA received in the fourth quarter thanks to miners, was left on the conscience of the third-party analysts who made it. And yet, if it came from the mouth of NVIDIA’s CFO, it means that the company’s management is not too opposed to such an assessment of the impact of mining on business in the fourth quarter.
Jen-Hsun Huang was more eloquent in discussing the problem than his colleague. He stressed that the demand for new video cards from miners began to grow only this year, until then the performance of the ecosystem for mining cryptocurrencies was supported by temporarily decommissioned farms in previous stages, which were put back into operation. And even now, specialized accelerators (ASICs), and not video cards, determine the bulk of the computing power.
If some cryptocurrency is popular enough, this will inevitably lead to the emergence of specialized accelerators for its production, according to the head of NVIDIA. The performance of video cards in this case is needed only in the first stages, until the cryptocurrency has become widespread. A massive transition to the «proof of stake» model is inevitable, which implies working with distributed ledgers without the need for significant computing resources.
While NVIDIA is trying to satisfy the demand from professional large miners with the release of CMP accelerators, which will begin shipping in March this year. In the current quarter, this will bring NVIDIA no more than $ 50 million in revenue, which is not so much against the background of the main income in the gaming sector. The head of the company promised that he would regularly share revenue statistics for products of the CMP family. Also NVIDIA began to restrict mining on gaming graphics cards. As you know, in the case of the new gaming GeForce RTX 3060, the company will try to limit its performance in Ethereum mining. This will be an attempt to take into account the interests of gamers and miners at the same time. Both categories of consumers, according to the CEO of the company, should be satisfied with the results of this initiative.
NVIDIA’s miner-generated revenue will be modest in the long term, as the company’s founder expects. In the final part of his comment, he returned to the growth potential of the gaming market. Now in the world there are about 200 million desktop systems based on video cards of the GeForce family and at least 50 million gaming laptops. Only 15% of them are capable of accelerating ray tracing at the hardware level. Game lovers will be switching to more modern GeForce graphics cards, and the user base itself will grow.