NVIDIA's highly-anticipated Blackwell series of AI chips is facing a delay in going to market due to key design issues. According to the latest reports, the core of the problem is a defect in a processor chip that connects two Blackwell GPUs, a technical hurdle that severely restricts the production efficiency of the chip, resulting in the original shipment plan having to be delayed by at least three months, and the situation could be worse.
The news of the extension was confirmed by internal Microsoft employees and industry insiders. It is reported that Nvidia has informed major customers, including Microsoft, some of the world's leading cloud service providers, about this unforeseen situation. Among these customers are tech giants with high hopes for the Blackwell series, which had planned to use these advanced AI chips to accelerate the development of the next generation of large language models and automation technologies.
The problem was first discovered when Taiwan Semiconductor Manufacturing Company (TSMC) was preparing for mass production of the Blackwell B200 chip. It's rare for such a major design issue to be discovered at such a stage in the semiconductor industry's production process so close to mass production, which not only shocks NVIDIA's production plans, but also serves as a wake-up call for the industry to ensure design robustness and reliability while pursuing technological breakthroughs.
Pictured: Nvidia delays the release of next-generation AI chips
Despite this setback, Nvidia has shown a positive stance to respond. Despite the challenges faced by the Blackwell range, demand for its predecessor, the Hopper, remains strong, the company said. In addition, sample testing of Blackwell chips has been carried out extensively, and the company is optimistic about production growth in the second half of the year.
Morgan Stanley put forward a more optimistic forecast in its latest report, believing that the production of Blackwell chips may only be suspended for about two weeks, and it is expected to catch up with the original production schedule in the fourth quarter of 2024 through TSMC's collaborative efforts.
However, the impact of this postponement is far-reaching. Several tech giants, including Meta Platforms, Google and Microsoft, have pre-ordered tens of billions of dollars worth of Blackwell chips, which they originally planned to deploy in early 2025 to support the development and adoption of their AI technology. Now, they may need to reassess and adjust their technology deployment schedules.
In addition, Nvidia is also facing an antitrust investigation by the United States Department of Justice, which undoubtedly increases the company's uncertainty in the AI chip market. Despite this, NVIDIA and its partners are actively looking for solutions to overcome the current difficulties as soon as possible, meet market demand, and continue to maintain a leading position in the field of AI technology.
