17 May NVIDIA Sued For Misrepresenting $1 Billion Of Cryptocurrency Product Revenue
A miner inspects a setup in Sichuan, China in September, 2016. (Image Credits: Chinafile)
A couple of years back graphics processing unit designers Advanced Micro Devices Inc (NASDAQ:AMD) and NVIDIA Corporation (NASDAQ:NVDA) witnessed their GPU products experience unprecedented sales boom courtesy of the cryptocurrency mining boom. The companies’ products, originally designed to serve the needs of gaming users, were found suitable to compute the complex mathematical tasks that lay at the center of mining cryptocurrency.
As this boom ended, both NVIDIA and AMD saw their GPU shipments drop and inventories rise, with demand for their products slowing down due to dropping cryptocurrency prices. NVIDIA, for its part, was accused of financial impropriety by trying to shield investors from the true extent of its earnings from crypto products, by incorrectly classifying the revenue stream under Gaming, as opposed to OEM category as it had initially promised.