[TH] Upset Investors Accuse Nvidia of Masking $1 Billion in Mining GPU Revenue as Gaming - Overclock.net - An Overclocking Community
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[TH] Upset Investors Accuse Nvidia of Masking $1 Billion in Mining GPU Revenue as Gaming

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post #1 of 37 (permalink) Old 05-18-2020, 06:55 PM - Thread Starter
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[TH] Upset Investors Accuse Nvidia of Masking $1 Billion in Mining GPU Revenue as Gaming

Source: https://www.tomshardware.com/news/up...enue-as-gaming

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Back in 2017 when cryptocurrency was all the hype, people were buying every graphics card they could get their hands on, which was quite the party for AMD and Nvidia. Now, it looks like Nvidia is getting sued by some upset investors who claim Nvidia mislead them by reporting crypto revenue as gaming revenue, according to a report at The Register.

The original lawsuit was started in 2017, but it is only this week that the actual complaint has been filed in California.

During the crypto-craze, coin miners would buy up every GPU they were able to obtain, which lead to massive shortages and severely increased the prices of graphics cards to levels at which gamers wouldn't be buying them anymore.

"Sales data demonstrated that, throughout 2017, 60% to 70% of NVIDIA's GeForce revenue in China came from sales to crypto-miners, not gamers." reads the complaint. Such figures are similar elsewhere around the world, though likely varied a little depending on the popularity of mining and electricity prices. It's also worth noting that the Chinese market accounted for the majority of Nvidia's sales.
Can't wait to see what happens when they find out the majority of Nvidia's "gaming revenue" is coming from researchers.

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post #2 of 37 (permalink) Old 05-18-2020, 08:36 PM
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During the crypto-craze, coin miners would buy up every GPU they were able to obtain, which lead to massive shortages and severely increased the prices of graphics cards to levels at which gamers wouldn't be buying them anymore.

Yeaaaa...were still paying those prices. Before all this the top card was $500-$700. Not $1250. It will never be the same. The took the risk and priced the flagships at +1k and mouthbreathers ate it up. Sad that my gpu costs as much as every other component combined.

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post #3 of 37 (permalink) Old 05-18-2020, 08:40 PM
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Yaaaawn, they made money and as always want to make even more by paying a few lawyers simply because they pretend to not monitor the market and how the company they invested in is reporting sales and revenue etc.
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post #4 of 37 (permalink) Old 05-19-2020, 12:40 AM
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Quote: Originally Posted by latexyankee View Post
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Yeaaaa...were still paying those prices. Before all this the top card was $500-$700. Not $1250. It will never be the same. The took the risk and priced the flagships at +1k and mouthbreathers ate it up. Sad that my gpu costs as much as every other component combined.
Yup... GTX 680 AIB 4GB card was $499 with a $50 mail in rebate. The 780ti was $699 and the OG Titan was $1000 and it was laughed at as no one would buy it. 660ti was $229-250, 670 was $350. I guess history proved that wrong. In 6-7 years the price of most cards has more than doubled and in some cases nearly trippled.

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post #5 of 37 (permalink) Old 05-19-2020, 01:41 AM
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So, GTX went to mining. Jensen knew, but, for all intents and purposes, he really didn't, nor could he. Investors thought cards would sell like that forever and put money down accordingly. It turned out they're not making as much money as they thought they would.

Do they even have legal grounds to win anything in court? Technically, gaming cards were selling, and, technically, nVidia didn't necessarily know what people were using them for.

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post #6 of 37 (permalink) Old 05-19-2020, 01:48 AM
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Quote: Originally Posted by ToTheSun! View Post
Do they even have legal grounds to win anything in court? Technically, gaming cards were selling, and, technically, nVidia didn't necessarily know what people were using them for.
Exactly this. How do you prove Nvidia knew the percentage of new GPUs sold in China that were being used for mining?

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post #7 of 37 (permalink) Old 05-19-2020, 02:38 AM
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Meanwhile NVIDIA stock hits highest ever because the company is doing good .

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post #8 of 37 (permalink) Old 05-19-2020, 03:18 AM
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Quote: Originally Posted by ToTheSun! View Post
Do they even have legal grounds to win anything in court? Technically, gaming cards were selling, and, technically, nVidia didn't necessarily know what people were using them for.
This shouldn't impact Nvidia at all. Nvidia reported their revenues as required by Segmented Reporting standards so they will be fine. They didn't sell a "mining product", they sold a "gaming product" and reported revenues accordingly.
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post #9 of 37 (permalink) Old 05-19-2020, 04:02 AM
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Quote: Originally Posted by Asmodian View Post
Exactly this. How do you prove Nvidia knew the percentage of new GPUs sold in China that were being used for mining?
well from the complaint(link in the article)
Quote:
FORMER EMPLOYEES REFERRED TO IN THE COMPLAINT
FE 1 was employed by NVIDIA for over 10 years as a Senior Account Manager in China, leaving the Company in December 2017. As one of approximately four account managers in the China market (NVIDIA’s largest), FE 1 managed several large accounts for the Company’s “partners” (i.e., the device manufacturers to whom NVIDIA sold most of its products), primarily selling NVIDIA’s GeForce Gaming GPUs. FE 1 described his primary responsibilities as negotiating sales contracts, interacting with partner companies, and monitoring GeForce sales, pricing, inventory, and usage in China. FE 1 reported to Senior Sales Director Howard Jiang, who reported to Senior Director for China David Zhang in the United States, who reported to VP Worldwide GeForce Sales John Milner, who reported to EVP/SVP and head of Gaming Jeff Fisher, who reported to CEO Jensen Huang. As detailed below, FE 1 directly, personally, and repeatedly communicated with Jiang, Zhang, Milner, and Fisher about the explosion of cryptocurrency-related demand for GeForce GPUs and spoke with colleagues who attended meetings at which crypto-related sales data was presented to Huang.
thats one of five, by far the most impressive, if all true.

Remember the golden rule of statistics: A personal sample size of one is a sufficient basis upon which to draw universal conclusions.
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post #10 of 37 (permalink) Old 05-19-2020, 05:35 AM
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Quote: Originally Posted by aayman_farzand View Post
This shouldn't impact Nvidia at all. Nvidia reported their revenues as required by Segmented Reporting standards so they will be fine. They didn't sell a "mining product", they sold a "gaming product" and reported revenues accordingly.
I recall instead nvidia mining cards without display output

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