NVIDIA is facing a hefty bill. According to the latest data from Warranty Week’s annual report, the company saw its warranty expenses skyrocket in 2025, reaching a total of $894 million. This dramatic increase has raised immediate attention due to its magnitude and timing, closely linked to the persistent issues with the 16-pin power connector introduced with the RTX 40 generation.
This sharp spike marks a clear departure from previous years and highlights the concrete financial consequences of controversial technical choices when implemented on a large scale across widely distributed high-end graphics cards.
NVIDIA had previously kept its warranty expenses relatively controlled. Between 2022 and 2024, the costs hovered around $100 million per year, reaching a low point of $81 million in 2024. However, within twelve months, the situation drastically changed, with warranty claims multiplying tenfold to reach $894 million in 2025.
The quarterly progression reveals a particularly sharp acceleration towards the end of the year. After an initial quarter with high costs of $147 million, the figures remained significant before spiking in the fourth quarter, which alone accounted for $511 million in claims. This anomaly suggests a structural phenomenon rather than a one-time occurrence.
On the AMD side, the trend also indicates an increase in warranty costs, albeit to a much lesser extent. The manufacturer went from $110 million in claims in 2024 to $238 million in 2025, with a rising return rate but still below 1%. This notable evolution pales in comparison to the situation observed with its direct competitor.
At the center of these concerns is the 16-pin power connector introduced with the GeForce RTX 40 graphics cards, particularly the RTX 4090. Reports of overheating, poor insertion, and connector degradation emerged shortly after their launch, sometimes leading to partial cable fusion.
While NVIDIA has attempted to regulate the use of this standard through stricter recommendations, the problem seems to persist with the next generation. The RTX 50 series, especially the more power-hungry models like the RTX 5090 and RTX 5080, continue to experience similar issues.
These types of faults are particularly costly, as they can result in broader damages to the graphics card and even the power supply, mechanically increasing the average cost of each warranty claim.
In addition to technical challenges, the economic context has also played a significant role in the rising costs. The end of 2025 was marked by commercial tensions in the United States, accompanied by a sharp increase in tariffs on certain electronic components. Simultaneously, the price of DRAM memory soared, driven by massive demand linked to artificial intelligence. Given that this memory is a crucial element in graphics card repairs, each warranty intervention now costs significantly more than before.
As a result, NVIDIA not only has to manage a higher volume of returns but also absorb a significantly higher unit repair cost, further amplifying the overall financial impact.
Another revealing indicator of the situation is the provisions set aside by NVIDIA to cover these risks. In 2023, the group allocated $109 million. This amount multiplied nearly ninefold in 2024 to reach $948 million, before surpassing a new milestone in 2025 with a total of $2.59 billion, over a billion of which was in the fourth quarter alone.
This trend indicates a clear anticipation from the manufacturer: warranty-related costs are seen not as a temporary phenomenon but as a fundamental trend likely to have a lasting impact on results.
AMD is following a similar trajectory, albeit on a much smaller scale, with provisions increasing from $126 million in 2023 to $358 million in 2025.
Beyond the specific case of NVIDIA, this situation highlights the risks associated with the introduction of new hardware standards, especially when they involve critical elements like power supply. A failure, even marginal in proportion, can quickly escalate into a major industrial issue when volumes are significant.
With supply chains still under pressure and component costs high, warranty expenses could continue to burden GPU manufacturers in the years to come. For NVIDIA, the priority will now be to restore confidence in its solutions, especially as competition remains fierce across all market segments.
