AI Boom Raises Concerns of Another GPU Shortage

If you’ve been following the tech news, you know that “Artificial Intelligence” is the next big thing. The growth potential in AI has investors and engineers excited. However, the demand for consumer-grade GPUs for AI computations is starting to create concerns of another GPU shortage, similar to what happened with cryptocurrency mining.

In recent years, the cryptocurrency boom and the pandemic caused a nightmare for GPU buyers. Graphics card prices skyrocketed, making it difficult for regular PC gamers to purchase a new card. Although GPU prices have since normalized, many gamers still remember the difficulties they faced.

The current AI boom has led to significant investments in companies like Nvidia, which had its best quarter ever due to strong sales to AI firms. Tech mogul Elon Musk has reportedly purchased thousands of GPUs for his new AI project. As a result, Nvidia is focusing more on producing cards for corporate AI firms, putting a halt to the production of the RTX 4000 series.

This shift in the market, coupled with startups using consumer-grade graphics cards for AI services, has raised concerns among analysts. They fear that the demand for GPUs will outstrip the supply, creating another shortage in the near future. These concerns gained traction after an executive from Comma, an AI-powered self-driving software company, shared a photo of dozens of newly purchased RX 7900 XTX graphics cards.

So far, these fears of a new GPU shortage have not materialized in the market. In fact, GPU prices are currently slightly below retail. Intel is also offering competitive options, and AMD is set to release new mid-range cards later this year. However, if you’re planning to build or upgrade your gaming PC with the best GPUs, it may be wise to make your purchase sooner rather than later.