To Get One, You Must Pay at 1,800-Won Exchange Rate... Nvidia GPUs Unobtainable Even with Rapid Clicking [Paek Jongmin's Shockwave]

Shortage of New GPUs Essential for AI Research and Gaming Continues After Launch
Nvidia Claims to Inherit "Moore's Law" as Prices Soar
Used GPU Prices Also on the Rise
Exchange Rates Above 1,800 Won Increase Burden for Korean Consumers
Nvidia'

Interest in using open-source artificial intelligence (AI) is growing, but individual users and researchers are struggling to obtain the latest graphics processing units (GPUs). The shortage is not limited to data center GPUs; even consumer GPUs are in short supply. As prices soar with each new product release, consumer backlash is also being observed. Since the growth of AMD and Intel, which are supposed to compete with Nvidia's dominance, remains limited, this situation is expected to continue for the time being.

Jensen Huang, CEO of Nvidia, is unveiling the RTX 50 series GPU during his keynote speech at CES 2025 on the 6th of last month. Photo by Paek Jongmin

Shin Jungkyu, CEO of Rablup, announced on his social media account on the 11th that he had won the right to purchase the recently launched Nvidia RTX 5080 GPU. The RTX 5080 is Nvidia's latest GPU. There is a story behind Shin revealing that he won the purchase right. This GPU, which went on sale on January 31, has already become extremely scarce. This is not unique to Korea; it is a global phenomenon. The 5090, which is even more powerful and highly sought after by AI researchers, is almost impossible to find. Shin said, "No matter how quickly I clicked when the restock alert popped up, I couldn't get one, so I had given up. Then I saw that they were holding a lottery for the purchase right, so I applied. I can't believe it's come to this..." Although Shin was even invited by Nvidia to participate in an AI event in Japan last year, acquiring an RTX 50 series GPU has been an ordeal for him as well.

Overseas consumers are expressing dissatisfaction, questioning whether Nvidia has engaged in "paper launching"?announcing sales on paper without actually having any stock available.

Domestic consumers are voicing complaints not only about the shortage but also about the price. In the case of central processing units (CPUs), DRAM, and NAND flash semiconductors, it is rare for prices to rise with the release of new products. This is due to "Moore's Law," which states that semiconductor capacity doubles every two years. Even in fierce competition, it is now difficult for the latest products to see price increases relative to performance. The GPU market, dominated by Nvidia, is different. The price trend is the opposite of what Moore's Law would predict. While Nvidia CEO Jensen Huang emphasizes "Huang's Law" and claims that Nvidia is continuing Moore's Law, GPU prices continue to rise. This is why Nvidia's performance is soaring.

The first GPU to carry the RTX name, the 2080, was priced at around 800,000 won (about $600) when it was released in 2018. However, prices have soared to over 2 million won (about $1,500) for the 5080, following the 3080 and 4080. The 5090 comes with an overseas price tag of $2,000 (about 3.7 million won). When CEO Huang unveiled the RTX 50 series at CES 2025 and announced that the 5070 would offer 4090-level performance for $549, it was met with great enthusiasm. However, as the products have started to be released, criticism has grown louder.

Domestic consumers are facing even higher costs due to the strong US dollar. Most manufacturers supplying Nvidia GPUs in Korea are applying exchange rates above 1,800 won per dollar. Compared to Apple, which used an exchange rate in the 1,500 won range for the iPhone, many feel Nvidia's rate is excessive.

The high pricing policy and shortage of the 50 series have even driven up the prices of used GPUs. The price of used 4090 GPUs, which had increased in supply ahead of the 5090 launch, has already surged back above 3 million won (about $2,200).

Nvidia GPUs do not even align with Moore's Law, which predicts that performance should double every two years. The 5080, for example, is criticized for offering lower performance than the top model of the 40 series, the 4090. If it was released after two years, the performance improvement should have been significant, but in reality, it was not. Some even suspect that Nvidia is deliberately limiting the performance gains in the absence of strong competitors.

An industry insider commented, "According to Moore's Law, semiconductor prices should be falling, but Nvidia's situation seems completely different. If AMD and Intel were to make progress, it could put the brakes on Nvidia's dominance in the market, but it seems unlikely that there will be any changes in the near future." In their recently announced earnings, both AMD and Intel's GPU divisions fell short of expectations.