Drooid Logo
Back to story perspectives

Full Breakdown

NVIDIA Halts Bundling VRAM Chips with GPUs Amid Memory Shortage

11/28/2025, 2:51:16 AM

Industry-Wide Memory Crisis

NVIDIA, the leading GPU manufacturer, is reportedly halting the bundling of video memory (VRAM) chips with its GPU dies for its add-in board (AIB) partners. This decision stems from a significant memory shortage affecting the entire industry, exacerbated by a shift in focus towards AI applications, which has diverted resources away from the retail market. The leaker "Golden Pig Upgrade" has indicated that NVIDIA will now supply only the raw GPU dies, leaving AIBs to source their own GDDR memory from suppliers like Samsung, Micron, and SK Hynix.

Implications for AIB Partners

The change in NVIDIA's supply strategy could have profound implications for AIB partners, particularly smaller vendors. Larger companies may navigate this transition more easily due to established relationships with memory manufacturers, but smaller firms may struggle to secure the necessary components. This could lead to increased operational costs and potentially drive some smaller players out of the market. The ongoing memory crisis has already led to inflated prices for both system DRAM and video memory, further complicating the situation for these companies.

Rising Prices and Market Dynamics

As AIBs are forced to negotiate their own deals for VRAM, there are concerns that the added costs will ultimately be passed on to consumers, leading to higher GPU prices. AMD has already indicated a planned 10% price increase across its GPU product line, also driven by the memory shortage. This trend suggests that consumers may face a return to elevated prices for graphics cards, reversing the recent trend of declining costs.

Criticism and Concerns

Critics of NVIDIA's decision argue that this move could disproportionately affect smaller AIBs, which may lack the resources and connections to secure VRAM at competitive prices. The potential for a GPU shortage looms, as smaller vendors may be unable to sustain operations in the face of rising costs and limited availability. Some industry observers recall how previous tensions between NVIDIA and certain vendors, such as EVGA, led to significant market changes, raising concerns about the long-term stability of the GPU market.

Official Statements & Responses

While NVIDIA has not officially confirmed these rumors, the implications of such a decision have sparked discussions across the industry. AMD's announcement of a price increase reflects the broader challenges faced by GPU manufacturers due to the memory shortage. The situation remains fluid, with many stakeholders closely monitoring developments.

Conflicting Reports & Gaps

Despite the strong indications from leakers, the situation remains speculative, and NVIDIA has not provided a definitive statement regarding its supply strategy. The extent to which this change will impact the availability and pricing of GPUs is still uncertain, as the market continues to adapt to the ongoing memory crisis.

What's Next

As the industry grapples with these challenges, stakeholders are advised to stay informed about potential price changes and availability issues. The situation may evolve rapidly, with further announcements expected from both NVIDIA and its AIB partners in the coming weeks.