[News] NVIDIA CEO Jensen Huang Estimates Blackwell Chip Price Around USD 30,000 to USD 40,000

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With the Blackwell series chips making a splash in the market, pricing becomes a focal point. According to Commercial Times citing sources, Jensen Huang, the founder and CEO of NVIDIA, revealed in a recent interview that the price range for the Blackwell GPU is approximately USD 30,000 to USD 40,000. However, this is just an approximate figure.

Jensen Huang emphasizes that NVIDIA customizes pricing based on individual customer needs and different system configurations. NVIDIA does not sell individual chips but provides comprehensive services for data centers, including networking and software-related equipment.

Reportedly, Jensen Huang stated that the global data center market is currently valued at USD 1 trillion, with total expenditures on data center hardware and software upgrades reaching USD 250 billion last year alone, a 20% increase from the previous year. He noted that NVIDIA stands to benefit significantly from this USD 250 billion investment in data centers.

According to documents recently released by NVIDIA, 19% of last year’s revenue came from a single major customer, and more than USD 9.2 billion in revenue from a few large cloud service providers in the last quarter alone. Adjusting the pricing of the Blackwell chip series could attract more businesses from various industries to become NVIDIA customers.

As per the report from Commercial Times, Jensen Huang is said to be optimistic about the rapid expansion of the AI application market, emphasizing that AI computing upgrades are just beginning. Reportedly, he believes that future demand will only accelerate, allowing NVIDIA to capture more market share.

According to a previous report from TechNews, this new architecture, Blackwell, boasts a massive GPU volume, crafted using TSMC’s 4-nanometer (4NP) process technology, integrating two independently manufactured dies, totaling 208 billion transistors. These dies are then bound together like a zipper through the NVLink 5.0 interface.

NVIDIA utilizes a 10 TB/sec NVLink 5.0 to connect the two dies, officially termed NV-HBI interface. The NVLink 5.0 interface of the Blackwell complex provides 1.8 TB/sec bandwidth, doubling the speed of the NVLink 4.0 interface on the previous generation Hopper architecture GPU.

Per a report from Tom’s Hardware, the AI computing performance of a single B200 GPU can reach 20 petaflops, whereas the previous generation H100 offered a maximum of only 4 petaflops of AI computing performance. The B200 will also be paired with 192GB of HBM3e memory, providing up to 8 TB/s of bandwidth.

In the development of the GB200, NVIDIA invested significantly. Jensen Huang revealed that the development of the GB200 was a monumental task, with expenditures exceeding USD 10 billion solely on modern GPU architecture and design.

Given the substantial investment, Huang reportedly confirmed that NVIDIA has priced the Blackwell GPU GB200, tailored for AI and HPC workloads, at USD 30,000 to USD 40,000. Industry sources cited by the report from Commercial Times point out that NVIDIA is particularly keen on selling supercomputers or DGX B200 SuperPODS, as the average selling price (ASP) is higher in situations involving large hardware and software deployments.

Read more

• [News] TSMC’s 4nm Process Powers NVIDIA’s Blackwell Architecture GPU, AI Performance Surpasses Previous Generations by Multiples
• [News] NVIDIA and AMD Clash in AI Chip Market, as TSMC Dominates Orders with Strong Momentum in Advanced Processes

(Photo credit: NVIDIA)