icon
icon
icon
icon
Upgrade
icon

Amazon (AMZN.US) AWS: Systems with Nvidia's (NVDA.US) new AI chips delayed to early 2025

AInvestThursday, Oct 17, 2024 10:30 pm ET
1min read

The world's largest cloud provider Amazon (AMZN.US) said its AWS unit is still waiting for Nvidia (NVDA.US) to deliver the chips for its new systems, which may not be ready until early next year, later than originally expected.

Nvidia said in March that partners including Amazon would have products based on its Blackwell chips by the end of 2024. But the company has been redesigning the chips, and Amazon is waiting for Nvidia to deliver a large number of chips to its data centers.

AWS chief executive Matt Garman said on Thursday that Nvidia's timeline had "shifted." "Now we're working with them, we have early samples, but as they ramp up production on the re-designed Blackwell chip, we may not get the real production samples until early next year," he said.

Investors are keenly focused on when Nvidia's latest products will be in customers' hands and put to use. The chipmaker has become one of the world's most valuable companies on the back of strong demand for its AI chips. Nvidia said it still expects to generate billions of dollars in revenue from the processor in the fourth quarter, even after the production delays.

Garman said AWS would be the first to deploy computers based on the new chips at scale, allowing it to get a unique view of Blackwell's progress. Dell Technologies (DELL.US) also said servers based on Blackwell would be fully available in early 2025.

Data center operators use Nvidia chips to develop artificial intelligence software and services. Nvidia acknowledged in August that production of Blackwell was proving more difficult than expected. The company said it was making changes to boost production.

Nvidia chief executive Jensen Huang said at the time: "We're going to have a lot of supply, and we're going to be able to ramp up production."

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.