Facepalm: Nvidia’s extremely anticipated Blackwell collection of AI chips has encountered a big setback. Newly found design flaws will delay shipments by not less than three months. This delay will doubtless trigger appreciable disappointment amongst clients who’ve positioned billions of {dollars} in orders.
Nvidia’s extremely anticipated Blackwell collection of AI chips is dealing with vital delays because of design flaws found late in manufacturing. The Data cites two nameless sources concerned with Nvidia’s chip and server {hardware} manufacturing, stating that the problem may take not less than three months to resolve.
The crux of the problem lies within the processor die connecting two Blackwell GPUs on a GB200 chip – an issue recognized by producer TSMC. In response, Nvidia is revising the design and might want to conduct new manufacturing assessments with TSMC earlier than mass manufacturing begins. As a stopgap measure, the corporate is contemplating producing a single GPU model of the Blackwell chip to expedite supply.
The delay has far-reaching implications for Massive Tech gamers who’ve invested closely in Nvidia’s expertise. As an example, Google has ordered over 400,000 GB200 chips in a deal exceeding $10 billion. Equally, Meta has positioned a $10 billion order, whereas Microsoft had plans to have 55,000 to 65,000 GB200 GPUs prepared for OpenAI by the primary quarter of 2025 – a timeline now in jeopardy.
Nvidia has reportedly knowledgeable Microsoft and one other cloud supplier concerning the delay affecting probably the most superior AI chip fashions within the Blackwell collection. Consequently, vital shipments of those chips are usually not anticipated till the primary quarter of 2025, doubtlessly disrupting the AI methods of those tech giants.
Regardless of these studies, Nvidia’s official stance stays optimistic. An organization spokesperson said that “manufacturing is on monitor to ramp” later this yr with out immediately addressing the reported delay. In the meantime, the affected firms, together with Microsoft, Google, Amazon Internet Providers, and Meta, have declined to remark.
The setback may enable Nvidia’s rivals to achieve floor within the AI chip market. Intel and AMD have struggled to influence Nvidia’s market share because the outset of the AI increase. Nevertheless, the delay may allow them to reposition their merchandise as viable options for purchasers needing rapid options.
As an example, AMD designed its open-source ROCm framework to compete immediately with Nvidia’s CUDA, providing builders an alternative choice to construct AI purposes with out being locked into Nvidia’s ecosystem. Likewise, Intel is growing AI accelerator chips, together with the Gaudi line, as extra inexpensive options. Based on Intel, its AI accelerators are one-third to two-thirds the value of competing manufacturers.
As clients transfer previous the preliminary disappointment of the delay, they could query Nvidia’s means to keep up its dominant 80-percent market share within the face of manufacturing challenges and growing competitors. Because the AI arms race intensifies, the trade will carefully watch how Nvidia navigates this hurdle and whether or not it could actually ship on its guarantees to its high-profile clients.
