The other day, you guys linked me to a tweet which showed that
a particular person on Twitter was buying up a lot of RS 7900 taxes,
and they said that there was a lot more purchases to come within this tweet.
And you guys wanted to know, is this going to be the next catalyst
that affects GPU prices, especially gaming GPUs,
which is what the said person in the tweet is saying that they're buying and
they're also going to be buying more of and this is going to be the catalyst
that causes a whole repeat of 2020 and 2021 crypto boom
where gaming GPU prices saw a near triple in the pricing.
And this just made it unbearable.
If you were a PC gamer wanting to either upgrade your GPU
or of course build a new gaming PC.
Though in today's video we are going to look at the for
and against and we'll start off with the against
what is actually some big things that are going on in the GPU space.
So let's take a look right after today's video sponsor.
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Welcome back to Tech.
Yes, Citi. And you've seen this tweet.
You've seen the follow up.
They're going to be buying a lot more GPUs.
And if other people take on this trend, then that means GPU prices
are just going to go through the roof, just like 2020 all over again.
And there's some big differences this time.
We'll talk about, first of all, the negative things here.
However, if you want to buy a gaming GPU more severely, and that is that
this has air has a potential to definitely raise the prices of GPUs.
Since the start of this year, we've seen a massive
AI boom sweeping through, especially the corporate side
and the investment side of things where there is literally billions of dollars
being invested from big companies like Microsoft and Amazon and Google.
And these guys are all pouring in a lot of money
either into already established companies like NVIDIA,
for example, or they're pouring it into new AI startups.
And the biggest concern here is, is that a lot of these
AI startups are going to need that juicy GPU compute power.
And this is the reason why we've seen invidious stock
price triple in the last eight months.
It's actually insane to see how much the value of their stock went up
after the recent crypto bust
that happened in 2022, where their stock price started going down.
And if we look at AMD, their stock prices doubled
and if we look at Intel, their stock price,
well, isn't doing so well, which we'll talk about right now as well.
We take a look at some benchmarks here from Puget Systems
have recently benchmarked the AI capabilities of both AMD and NVIDIA,
and they're showing that depending
on the benchmark, NVIDIA can do really well and beat out AMD
or if you're using the different shock benchmark for stable diffusion, which is
essentially an AI generation program that utilizes your GBS compute power.
You can see here that the AMD and NVIDIA cards are doing very well
depending on the benchmark.
Now, when I tested this at my own studio here, the AMD and NVIDIA cards
were doing really well, generating images over a thousand pixels
by a thousand pixels in quite a short amount of time.
However, the OC A7 70 from Intel just wouldn't flat out work.
So that's a bit of a problem if you're looking to invest in, say, Intel
for their AI capabilities versus AMD in video
where they're doing a lot better at this point in time.
And and I feel like this market sentiment is that if you want to invest in AI,
you invest in in video or AMD, and Intel has quite a bit of ways to catch up.
So this is where I feel I differs a lot from crypto
and that is purely going to be focused on improving products and services,
especially efficiency in a lot of businesses automatically.
Unlike crypto, I feel like A.I.
does have a lot of justification for its hype.
And of course when we translate hype into sales, that
can really get things out of control really quickly.
I mean, if a lot of these AI startups start delivering in terms of utilizing
these GPUs and providing products and services
that equate to savings for a lot of corporations in the world,
then you will see the demand for GPUs shoot up.
So I certainly has the potential to raise prices of gaming GPUs.
But now we're going to go into the arguments as to why.
I don't think we'll see the price outbreaks that we saw in 2020 and 2020
one's crypto boom where the GPUs just suddenly the demand came out of left field
and all the sudden everyone wanted to get a GPU,
whether it was for crypto mining to make money on or it was just for gaming,
those circumstances were much different to now.
First of all, back in 2020 there was the money printers.
They were spooled up at maximum.
Potential money was so cheap people wanted to get returns
on their investments, so they took that cheap money, put it into crypto.
And of course you had GPUs with the hash power that could validate
some of these networks produce coins and people could make a return on those.
So naturally they wanted to buy the GPUs to make money.
And so that saw the massive sudden demand for GPUs skyrocket.
But also we had another element added in there, and that was the COVID
lockdowns.
People were staying inside much more in this timeframe,
especially compared to the years before that like 2018 and 2019, for example.
And so
people wanted to do a lot more PC gaming, so they wanted a gaming GPU, you two.
And also on top of all that thrown into this mix is inflation more so sticky
inflation, the kind that's not going away, which means that they've had less
discretionary income to spend on things like gaming GPUs.
So we've actually seen gaming GPUs the cheapest they've ever been
on the new market and the use market for quite some time.
And so it's definitely safe to say that a lot of the demand for the gaming GPUs
didn't just come from corporate Asians who are making these big mining farms,
but also came from the average individual where I personally knew people
who were buying up hundreds of GPUs and they were just small businesses.
So they were definitely adding to the problem
and they were causing the GPU prices to rise.
This time around.
If we go to places like vast AI or tensor doc dot com,
we can see that these are places where people can rent
AI power from GPUs that people are willing to rent out.
Essentially. Now the platform has to take a cut.
Of course they're not going to do this for free.
And when we look at the prices here, people can rent out RTX 30, 94
on to $0.20.
And if you're looking at the kilowatt per hour, say the average cost of $0.15
per kilowatt hour, this makes it so that these people would really be making
a couple of dollars at best on an RTX 30, 90,
and then say, for instance, they get their returns on investments
for 200 days that GPU has a potential to fail.
And so this first factor alone makes it so that's not so attractive.
On top of all, that crypto was constant.
You had your GPUs mining constantly for the network getting returns.
If you're renting a GPU out for AI, that person, once they're done with that
rental service will then stop and then you have to re rent.
And so I don't see the potential here for consistently good returns,
unlike crypto, where it was a lot better for the individual who had a GPU.
And then there's the last catalyst here,
and that is if you are a business and you need serious
compute power from GPUs to process AI workloads,
are you going to rely on someone else you don't even know
somewhere else in the world to do that for you Say, for instance,
you got Romulus in Romania with his RTX 3090
hashing out the powerful you What if something happens to Romulus GPUs?
Suddenly the thing fails and you're in the middle
of a crucial critical service that you're providing someone
and you can't just call up Romulus and be like your Romulus, Fix those GPUs.
We need to get to work right away.
I just don't think that's going to happen.
I think a business that's serious about deploying products and services
in this nature is not going to have that business work model.
They're going to have their own servers.
They're going to have a redundancy plan available too.
And so I feel like these products and services are just going to be niche
as opposed to crypto, which was a 24 seven thing.
But lastly, the biggest reason
not to be too concerned about this right now is the prices of GPUs
are actually really good at this point in time.
I've heard reports of the 7900 XT XS going over MSRP,
but when I checked they're still under MSRP in Japan.
There's some of the cheapest
I've ever seen them, especially the AMD, GPUs, even RTX 49.
These are coming in under MSRP right now.
And so I feel like there's nothing to be too concerned about
because this even then, if the high demand comes in and it starts
buying up all these GPUs, it's going to be more geared towards the high VRAM GPUs.
So I would say the 24 gigabyte models are going to be the first target here
because when I was doing some benchmarking on this stable diffusion,
it actually ran out of VRAM on the 24 gigabyte RTX 49.
So I had to actually cut down the resolution.
And so that's going to be a big catalyst too.
So if you're gaming and you just want a game at ten
$0.30 or 1440p, I feel like a lot of these AI workloads are going to need VRAM.
And so you've got your eight gigabyte cards there.
They're still perfectly fine for playing games.
And so I feel like even if this demand came in sudden and came in hard,
it would be for the more higher end cards and not the midrange cards,
which I actually prefer.
The midrange cards be unaffected as opposed to the high end,
because that's where the majority of PC gamers lie.
And so I feel like the eight gigabyte cards and even the 12 gigabyte cards
and things like that will remain relatively unaffected.
And the good thing is here is two,
if you want to get a gaming graphics card right now, the prices on
these are at 6600s as well as RTX, 4070s and RS 6700.
XT, for example.
They're already extremely good at this point in time.
They're closing off today's video.
I will say that if you've been wanting to buy a GPU for a while,
especially if you couldn't buy a GPU in 2022 and 21, then now's actually
a better time than ever to get a deal both off the new market and the U.S market.
And I feel like the use market is actually a better time than it's
ever been in the history of gaming GPUs,
where I've just been picking up some absolute bargains as of late.
And also as we talked about in a recent economics and finance video a.k.a Tech.
Yes. And comics video.
We looked at why the entry level and also the mid-range GPUs.
I feel like they're
not going to come down a whole lot more, especially in relation to the new parts.
The use market.
I still feel there's a bit of potential to come down in prices there,
but in terms of new GPUs feel like they're not going to come down a whole lot more.
And also if you're
looking for a high end GPU, then as we discussed in today's video,
there actually is a lot of potential there to raise the prices
of those higher energy use, especially the ones with big VRAM buffers.
Anyhow, guys, hope you enjoy today's video.
Do let us know your thoughts and opinions as always.
Just like this question of the day here, which comes from
how most of Peter 4805
Can you make a video about the window settings that you've done?
I would like to test those online ryzen 5900
or if you did, would you be able to link it?
Thank you.
So actually, in terms of lowering input latency, we've got a video coming out
later this month where I'm looking at the biggest settings that affect input lag.
There's actually three settings in general that have the potential
to throw your input latency up, and that's not a good thing,
especially if you're doing a lot of actions per minute.
Wait for that one. It's coming.
And with that aside, I'll catch you guys in another take with you very soon
if you haven't already, and you stay this far and enjoy that tech.
Yes. Content. And you know what to do.
And I'll see you in the next one piece out for now. But.