> Supply is already maxed out and growing as fast as possible.
No, it's not anywhere near maxed out anymore. The chip shortage has been over for a while; now there is too much supply.
But that's not the issue. The issue is that Nvidia really wants to force these enterprise customers to pay extremely high prices. This is why they are so afraid to give any more VRAM to the consumer chips, because if they were at all suitable for VRAM-heavy workloads, every HPC company would buy a couple $2,000 consumer cards in place of each $15,000 datacenter card. That'd lose Nvidia something like 70% which they would find entirely unacceptable.
By "too much supply" I mean that once the chip shortage ended, they tried to take advantage of that and produced far too many 30-series cards. When the mining crash happened, they went surprised pikachu face because then they couldn't easily sell off the rest of their inventory.
> Isn't this good? The production at scale effects will kick in, lowering the price and supply will meet demand after some hiccups.
You didn't account for the "hiccups", which can vary from 5-20 years until competition catches up, longer than the life of many companies. In spherical cows worlds of economics that would be just a hiccup.