Former EVGA Employee Details Deteriorating Relationship with Nvidia Before 2022 Exit

Background to EVGA's GPU Exit

Brendon Ray Hedrick, a former EVGA product manager, detailed the difficulties EVGA faced with Nvidia, which he believes led to EVGA's departure from the GPU market in 2022. Hedrick's concerns began in 2016 with the release of Nvidia's Founders Edition GPUs.

Direct Competition and Loss Leaders

Nvidia's decision to sell Founders Edition graphics cards directly to consumers created direct competition for its board partners, including EVGA. Additionally, Nvidia mandated that partners offer models at the announced MSRP, even if it meant selling them at a loss. Non-compliant partners faced reduced chip allocations, forcing companies like EVGA to produce these loss-leading products to secure necessary chip supplies.

Impact on Premium Offerings

EVGA's premium cards, which featured custom circuit boards and cooling, carried a higher price. This made them appear expensive compared to Nvidia's advertised starting prices. As Founders Edition cards improved, the value proposition of more expensive AIB offerings diminished for many buyers. This resulted in loss-leading models frequently selling out, while premium GPU owners extended their upgrade cycles.

Technological Bets and Financial Strain

Hedrick also noted the financial strain caused by Nvidia's technological advancements, such as real-time ray tracing with the RTX 20-series in 2018. He questioned whether a company like EVGA could absorb the financial risk of convincing consumers to adopt new technology when only a few games supported it, unlike Nvidia which could afford such long-term bets.