Nvidia, the leading AI chipmaker, has reportedly informed Microsoft and other cloud providers of a delay in the production of its highly anticipated Blackwell B200 AI chip, reports The Information. This setback, attributed to a design flaw discovered late in the production process, could postpone the mass shipment of the chip by at least three months, according to The Information.
The B200 chip, the successor to Nvidia’s popular H100 chip, is crucial for powering AI cloud infrastructure. Major cloud providers like Microsoft, Google, and Meta have reportedly placed orders worth tens of billions of dollars for the new chip. Nvidia has acknowledged the strong demand for the B200, stating that “Blackwell-based products will be available from partners starting in 2024.” However, the recent delay could push the availability of the chip to the first quarter of next year.
The delay has raised concerns among industry observers, as Nvidia’s chips are vital for powering AI applications and services. The company’s dominance in the AI chip market has been a key factor in its recent success, and any setbacks could have a significant impact on its growth trajectory.
In response to the reported delay, Nvidia stated that production is “on track to ramp in the second half.” However, the company did not provide further details on the timeline or the nature of the design flaw.
While the delay is undoubtedly a setback, Nvidia is reportedly working with chip producer Taiwan Semiconductor Manufacturing Company (TSMC) to resolve the issue and resume production as soon as possible. In the meantime, customers like Foxconn, which has secured orders for reference-designed GB200 chips, are expected to continue receiving shipments according to the original schedule.
The delay in the B200 chip’s launch highlights the challenges and complexities of developing and manufacturing cutting-edge technology. It also underscores the intense competition in the AI chip market, with companies like AMD vying to challenge Nvidia’s dominance. Despite the setback, Nvidia remains a major player in the AI landscape, and the demand for its chips is expected to remain strong.
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