The best way to think of them is as cousins; they are similar - but not exactly the same.
They focus more on higher VRAM and CUDA cores compared to GPUs, while forgoing 3d acceleration capabilities.
But they both come out of the same factories; so when the demand for AI cards is as high as it is now - and Nvidia can sell as many as it produces with a higher margin than GPUs, there is little incentive for them to produce more GPUs and sell them at a competitive price.
So when the AI bubble bursts, demand for AI cards will crater - and there will be no financial incentive to mass produce them in such high quantities. This frees up production capacity at the TSMC factories, incentivising production of lower margin products like GPUs.
Economics is largely a game of supply & demand; when supply outstrips demand, prices fall as sellers search for buyers. When demand outstrips supply prices go up as buyers search for sellers.
The best way to think of them is as cousins; they are similar - but not exactly the same.
They focus more on higher VRAM and CUDA cores compared to GPUs, while forgoing 3d acceleration capabilities.
But they both come out of the same factories; so when the demand for AI cards is as high as it is now - and Nvidia can sell as many as it produces with a higher margin than GPUs, there is little incentive for them to produce more GPUs and sell them at a competitive price.
So when the AI bubble bursts, demand for AI cards will crater - and there will be no financial incentive to mass produce them in such high quantities. This frees up production capacity at the TSMC factories, incentivising production of lower margin products like GPUs.
Economics is largely a game of supply & demand; when supply outstrips demand, prices fall as sellers search for buyers. When demand outstrips supply prices go up as buyers search for sellers.