Nvidia's GPU Material Defect Cost $475.9 Million

Nvidia weak die/packaging material gaffe was one of the worst and most damaging for the GPU company. Certain versions of previous generation MCP and GPU (G84, G86) products shipped before July 2008, especially in notebooks, would fail due to the bad material, which led to a ripple effect of in and out of warranty claims.

Years later, the charges against Nvidia are still taking their toll. In the most recent quarter, Nvidia reported a charge of $193.9 million which includes additional remediation costs over the GPU error.

With this $193.9 million on top of the $282 million of net charges from previous statements, the total net charge over the GPU material flaw totals $475.9 million.

Nvidia may have reason to be optimistic, however, as it believes that it may be finally done paying for its mistake. Nvidia CEO Jen-Hsun Huang believes that the $193.9 million could be the enough to put the problem behind the company.

"It's our best estimate," he said, talking to Cnet. "With much, much more understanding and more data than we had two years ago or a year ago. And we've had the opportunity to work with every single PC (maker) out there. So we think it's near the end."

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  • pbrigido
    Let's hope they learn from their mistakes and move on.
  • zampolit
    My Asus Laptop G2S had to be returned because my 8600M's solder became lose. I noticed at strange times, or strange angles of the screen it would get a green, red, or blue hue...and sometimes have red square artifacts all over the screen.

    But, Asus took the laptop back not problem and gave me a M71V replacement. :)
  • mavroxur
    pbrigidoLet's hope they learn from their mistakes and move on.

    Agreed. After paying that kind of money, I hope it doesn't happen again.