Blackwell Blues: NVIDIA's AI Chip Delays Stir Concerns at Tech Giants

Word on the StreetSunday, Nov 17, 2024 9:00 pm ET

1min read

Sources indicate that NVIDIA's latest generation Blackwell AI chips are encountering significant overheating issues in high-capacity server racks. These challenges have necessitated design modifications and project delays, leading major clients such as Google, Meta, and Microsoft to question the timely deployment of Blackwell-powered servers.

The Blackwell GPUs, specifically designed for AI and high-performance computing (HPC), have shown overheating problems in servers configured with 72 processors, where power consumption can reach up to 120 kilowatts per rack. This overheating has forced NVIDIA to repeatedly revise the rack design, limiting GPU performance and potentially damaging hardware. Consequently, clients are concerned that these technical issues will slow the deployment process of processors within their data centers.

To address these challenges, NVIDIA has instructed suppliers to modify rack designs and is collaborating with partners to optimize cooling systems. Although these engineering adjustments are standard in large-scale technology launches, they have further postponed the product's delivery timeline.

An NVIDIA spokesperson commented on the situation, noting that the company is closely cooperating with cloud service providers, and that the design tweaks are part of the normal research and development process. NVIDIA aims to ensure that the final product meets performance and reliability expectations while expediting solutions to technical hurdles.

The revised Blackwell GPUs only entered into mass production by the end of October this year, with shipments expected no sooner than the end of January next year. Tech giants such as Google, Meta, and Microsoft rely on NVIDIA GPUs to train their most advanced AI models, and any delays in these shipments inevitably impact their research and development schedules, as well as product launches.

Back in March, NVIDIA showcased its Blackwell chip, originally stating that it would ship in the second quarter.

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.