Nvidia must increase its production of graphics processing units (GPUs) to address a shortage caused by cryptocurrency miners, said the company's chief executive on Monday.
The California-based company's GPUs are highly sought after by both gamers and crypto miners due to their parallel processing power – and the surge in crypto mining has made it difficult for gamers to get their hands on the products, said Jen-Hsun Huang, who is also the company's co-founder, during an interview with TechCrunch.
He noted that:
The demand comes – at least partly – from the decentralized nature of cryptocurrencies, Huang explained.
He told TechCrunch that "at the highest level the way to think about that is because of the philosophy of cryptocurrency - which is really about taking advantage of distributed high-performance computing – there are supercomputers in the hands of almost everybody in the world so that no singular force or entity that can control the currency."
Despite the GPU shortage, crypto miners still comprise only a small portion of Nvidia's total business, Huang said in the interview.
Last month, Huang noted that "crypto ... is not going to go away" during an interview with Barron's. At the time, Nvidia announced that its revenue from cryptocurrency miners had beaten expectations, though chief financial officer Colette Kress minimized the impact miners actually had during an earnings call.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.