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Blackwell is key to Nvidia's next growth phase. The new AI chip has reportedly hit an overheating snag.

Nov 18, 2024 - businessinsider.com
Nvidia has reportedly asked suppliers to redesign server racks for its new Blackwell chips due to overheating issues, according to The Information. This late-stage reconfiguration has sparked concerns over potential delivery delays for the chips, which are highly sought after for their AI development capabilities and are expected to start shipping next month. The Blackwell chips, which come in variations known as the B100, B200, and GB200, are at least twice as fast as their predecessor, Hopper, and are considered a key growth driver for Nvidia.

The potential delay follows a previous setback when Nvidia had to push back shipments by a quarter due to design flaws. However, Nvidia CEO Jensen Huang has stated that the design flaw has been fixed with help from TSMC. Despite these issues, demand for the Blackwell chips remains high, with customers including Amazon Web Services, Meta, Microsoft, and SoftBank. Nvidia's share price has surged by 195% since the start of the year, making it the world's most valuable company.

Key takeaways:

  • Nvidia has asked its suppliers to redesign server racks for its new Blackwell chips due to overheating issues, sparking concerns over potential delivery delays.
  • Blackwell chips, which are key for AI development and are at least twice as fast as their predecessor, are highly sought after and have been sold out for the next 12 months.
  • Customers of the Blackwell chips include major tech companies such as Amazon Web Services, Meta, Microsoft, and SoftBank.
  • Nvidia's share price has increased by 195% since the start of the year, making it the world's most valuable company, surpassing Apple.
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