alt Hacker NewsEvery time nvidia takes its fab time and uses it to build anything other than datacenter chips it is losing money due to the massive markups the datacenter products have. Expanding their consumer offering means the datacenter backlog is going down which is very bad for their margins. Consumers will never pay 10-100x what it costs to fab something like datacenter users will.
In many cases it isn't Nvidia paying for the fab time. For instance, the Nintendo Switch 2 is basically a pure-play design and support product for Nvidia, while Nintendo negotiates with Samsung for the actual SOC prices. Their IP philosophy is closer to AMD's than Apple's, Nvidia has long roped in 3rd party manufacturers to mark up, integrate and sell their hardware.