I'm curious about the real costs behind NVIDIA's production of their 5090 GPUs. Specifically, what do you think it costs them in terms of materials, production, research and development, and all those hidden factors? I'm not looking for a simple dollar amount but more of an idea of what goes into the total price tag. How much do you think they make in profit on these cards?
3 Answers
When you consider everything, like R&D, labor, and the actual materials, the production cost is pretty high. Estimates suggest that while the parts might cost around $500, add another $300 for assembly and you get a ballpark figure of around $800. The real cost includes a ton of benefits that employees expect, plus the factories and logistics involved.
It's tricky to pin down an exact manufacturing cost because of all the factors at play. Some folks argue that if you look strictly at materials and manufacturing for a perfect scenario, it could be about $300. But, when you factor in all the R&D and overhead, it's evident why they price it where they do.
Right? It's all about covering costs and profits, not just materials.
Honestly, the cost of making these cards is just one part of the equation. NVIDIA needs to cover billions spent on development and production facilities. Even if it costs around $5 for raw materials, the entirety of their investment definitely drives the final sale price much higher.
Yeah, but $2,000 for the final price still seems steep given the production cost.