Overview
- Nvidia paid $894 million for discrete GPU warranties in 2025, up from $81 million in 2024, with a late-year surge that reached $511 million in the fourth quarter.
- The company’s reported claim rate rose from 0.17% in the first quarter of 2025 to 0.90% in the fourth quarter, according to Warranty Week’s review of Nvidia’s filings.
- Nvidia set aside $2.59 billion for future warranty costs in 2025, including $1.07 billion in the fourth quarter, signaling expectations for higher claims or pricier repairs.
- Coverage links part of the increase to 16‑pin power connector failures on GeForce RTX 40 and 50 series cards, where melting plugs damaged cables and boards, alongside pricier DRAM and tariffs that raise each repair bill.
- AMD also saw higher costs, with warranty payments rising to about $238 million in 2025 and its claim rate near 0.68–0.69%, while model‑by‑model breakdowns for either vendor remain unclear across gaming, workstation, and data‑center GPUs.