Info Gulp

What Is a Graphics Processing Unit (GPU)?


Last Updated:
Info Gulp employs strict editorial principles to provide accurate, clear and actionable information. Learn more about our Editorial Policy.

    Highlights

  • A GPU is a specialized chip for rendering graphics, essential for smooth visuals in videos and games since its market introduction in 1999
  • GPUs differ from CPUs by using thousands of cores for parallel processing, enabling faster handling of complex computations in fields like AI and cryptocurrency mining
  • The rise of cryptocurrencies has led to GPU shortages and price hikes, affecting gamers and other users
  • Major players Nvidia and AMD dominate the GPU market, with Nvidia pioneering the technology and both seeing revenue boosts from mining demands
Table of Contents

What Is a Graphics Processing Unit (GPU)?

Let me explain what a Graphics Processing Unit, or GPU, really is. It's a chip or electronic circuit designed to render graphics for display on your electronic devices. I remember when GPUs hit the wider market in 1999, and they're most famous for delivering the smooth graphics you expect in today's videos and games.

Key Takeaways

Here's what you need to know right away: The term GPU refers to that chip or circuit that handles rendering graphics on your screen. People often mix up 'GPU' with 'graphics card,' but they're not the same thing. GPUs first caught on with video editors and gamers, but now cryptocurrencies have opened up a whole new demand for them. Introduced broadly in 1999, GPUs are key for the high-quality graphics in modern media. Lately, there's been a shortage because of their use in crypto mining.

How a Graphics Processing Unit (GPU) Works

You should understand how a GPU operates. The graphics in videos and games are made from polygonal coordinates that get converted into bitmaps through a process called rendering, then turned into signals for your screen. This demands a ton of processing power from the GPU, which is why they're also great for machine learning, AI, and other jobs needing lots of complex calculations.

History of the Graphics Processing Unit (GPU)

Let's look back at the history. In 1999, Nvidia brought out the GeForce 256, the first widely available GPU. They defined it as a single-chip processor with integrated features for transform, lighting, triangle setup, clipping, and rendering, capable of handling at least 10 million polygons per second. It boosted 3D gaming performance over what came before.

Nvidia still leads the market, but tech has advanced a lot. In the 2000s, they released the GeForce 8800 GTX with a texture-fill rate of 36.8 billion per second.

These days, GPUs are more popular than ever. AI and cryptocurrencies have expanded their use into new areas, and they've helped make virtual reality gaming more accessible and higher quality.

GPUs vs CPUs

Before GPUs came along in the late 1990s, your CPU handled all graphic rendering. Now, pairing a GPU with a CPU boosts overall performance by offloading intensive tasks like rendering from the CPU. This speeds up applications because the GPU handles many calculations at once, paving the way for more advanced software.

Both GPUs and CPUs use cores to process data—the more cores, the faster the tasks. GPUs have thousands of cores for parallel processing, unlike CPUs which use fewer cores for sequential tasks. A CPU might be quicker at simple calculations, making it better for basic jobs.

Special Considerations

Don't confuse GPU with graphics card—they're related but different. A graphics card is hardware that includes one or more GPUs, plus a daughterboard and other components to make it work.

A GPU can be built into the motherboard or part of a graphics card's daughterboard. High-end computers used to be the only ones with graphics cards, but now most desktops use a separate one with a GPU for better performance instead of relying on built-in options.

GPUs and Cryptocurrency Mining

GPUs started with video editing and gaming fans, but cryptocurrencies changed everything by creating a new market. Mining involves thousands of calculations to add transactions to a blockchain, and with a GPU and cheap electricity, it can be profitable.

Companies like Nvidia and AMD have seen huge sales jumps from mining. This frustrated regular buyers with rising prices and shortages, leading some stores to limit purchases. While Bitcoin miners now use specialized ASICs, GPUs are still used for lesser-known coins.

Important Note on GPU Shortages

The crypto boom has caused massive GPU shortages. Reports show they're selling for two to three times the normal price on sites like eBay.

Examples of GPU Companies

AMD and Nvidia are the big names in GPUs. Let me break them down for you.

Advanced Micro Devices (AMD)

AMD is a trusted maker of graphics cards, starting as a Silicon Valley startup in 1969. They focus on high-performance computing and visualization. In 2006, they bought ATI to enter the GPU space, and since then, they've dominated alongside Nvidia. As of May 2021, their market cap is $97.3 billion. They've shipped over 500 million GPUs since 2013 and hold 17% market share. AMD targets PC gaming and is popular with gamers everywhere.

Nvidia (NVDA)

Nvidia introduced the first GPU in 1999 with the GeForce 256. That same year, they went public at $12 per share; by May 2021, it's around $645. Their market cap is $404.8 billion, with 13% market share.

Nvidia leads in advanced GPUs. Their site notes that eight of the top 10 supercomputers use NVIDIA tech, powering 346 of the TOP500 systems. Their Selene supercomputer ranks fifth globally and is the fastest industrial one.

Graphics Processing Unit (GPU) FAQs

You might have some questions, so let's address them directly.

What Is the Difference Between GPU and VGA?

A GPU is the chip that renders graphics for display, while VGA is a connector that transfers video signals and output.

How Do You Overclock Your GPU?

First, clean your device and update your software with any fixes. Overclocking is straightforward now—install something like Afterburner, let it run, then test with a gaming benchmark.

What Is GPU Scaling?

GPU scaling lets you adjust a game's aspect ratio to match your monitor's resolution. Some think it improves image quality.

Other articles for you

What Is a Trust?
What Is a Trust?

A trust is a legal entity that holds and manages assets for beneficiaries, offering protection, tax benefits, and inheritance control.

What Is a Callable Bond?
What Is a Callable Bond?

Callable bonds allow issuers to redeem them early, offering higher interest to investors but exposing them to reinvestment risks when rates fall.

What Is a Comparative Market Analysis?
What Is a Comparative Market Analysis?

A comparative market analysis (CMA) estimates a home's price by comparing it to similar recently sold properties to aid sellers and buyers in real estate decisions.

What Is a Quota Share Treaty?
What Is a Quota Share Treaty?

A quota share treaty is a reinsurance agreement where insurers and reinsurers share premiums and losses based on a fixed percentage to manage risk and capacity.

What Is a Customer?
What Is a Customer?

Customers are essential buyers of goods and services that drive business success through revenue and loyalty.

What Is a Poison Pill?
What Is a Poison Pill?

A poison pill is a corporate defense mechanism to prevent hostile takeovers by diluting the acquirer's stake and forcing negotiations with the board.

What Is a Stock Gap?
What Is a Stock Gap?

Stock gaps are price discontinuities on charts caused by news or events, with four main types that help traders identify market shifts.

What Is a Risk-Adjusted Return?
What Is a Risk-Adjusted Return?

Risk-adjusted return evaluates an investment's profitability by accounting for the risk involved compared to a risk-free benchmark.

What Is an Offering Circular?
What Is an Offering Circular?

An offering circular is a condensed prospectus that informs potential investors about new securities, including finances, risks, and fund usage.

What Is Robotic Process Automation (RPA)?
What Is Robotic Process Automation (RPA)?

Robotic Process Automation (RPA) is software that automates repetitive office tasks to boost efficiency and cut costs.

Follow Us

Share



by using this website you agree to our Cookies Policy

Copyright © Info Gulp 2025