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Nvidia (NVDA.US) has suspended the development of the dual cabinet version GB200 (NVL36x2) AI server

AInvestWednesday, Oct 2, 2024 3:10 am ET
1min read

Well-known analyst Ming-Chi Kuo said that Nvidia (NVDA.US) will no longer provide the dual-rack GB200 (NVL36x2) AI server without customer customization requirements, only providing the single-rack versions of GB200NVL72 and NVL36. Nvidia's move is reportedly due to limited resources and customer preferences.

Kuo added that the move will not affect Nvidia's long-term trend but does raise questions about the company's execution capabilities and its supply chain.

Kuo explained: "In my view, Nvidia's recent frequent changes to its AI server product roadmap reflect their attempt to achieve a better balance between supply chain execution, competitive advantage, and customer demand (the discontinuation of NVL36x2 development is an example)." "This is a good thing, indicating that Nvidia is taking a more pragmatic approach to its product plans, but this shift may confuse some market participants about the supply chain changes."

Initially, Nvidia planned to develop three AI server cabinets based on the Blackwell GPU GB200 for AI and high-performance computing (HPC) workloads, namely NVL36, NVL72, and NVL36x2. However, managing all three projects became challenging, especially when developing two different 72GPU versions (NVL72 and NVL36x2) simultaneously. Therefore, Nvidia is now focusing on NVL72 and NVL36.

Nvidia's GB200NVL72 rack includes 18 compute trays and 9 NVSwitch trays (18 NVSwitch ASICs), with two Bianca boards in each tray, each board equipped with a Grace CPU and two Blackwell GPUs. This is Nvidia's most powerful product but also the most power-hungry solution, consuming about 120kW.

Earlier, Morgan Stanley analysts noted that Nvidia is more willing to sell AI server cabinets equipped with Blackwell GPUs. The NVL36 comes with 36 B200 GPUs, with an expected price range of $1.8 million to $2 million, while the NVL72 comes with 72 B200 GPUs, with an expected starting price of $3 million. The profit margin from selling cabinets is much higher than selling GPUs, GPU modules, or even DGX and HGX servers. In this case, Nvidia does not need to provide 450,000 GPUs to generate $10 billion in revenue.

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