NVIDIA's (NVDA, Financial) latest generation of Blackwell AI chips, which are integral to their high-capacity rack-mounted servers, are experiencing significant overheating problems. This issue has raised concerns among major clients like Google and Microsoft, who are anxious about timely deployment in their data centers. The overheating poses risks to processor performance and component integrity, prompting NVIDIA to instruct suppliers to redesign the racks to mitigate these issues.
The Blackwell AI chip was publicly introduced by NVIDIA in March, with an initial delivery target set for the second quarter of this year. However, design flaws have repeatedly delayed delivery. Company executives had previously indicated that customer shipments would begin in the fourth quarter. Reports suggest that the improved version of the Blackwell AI chip may ship as early as late January next year.
Amidst the global surge in artificial intelligence applications, NVIDIA has seen a substantial increase in market value. Since the launch of AI chatbot ChatGPT at the end of 2022, NVIDIA's stock price has surged nearly 1000%. The company is slated to release its latest financial results on November 20th, after the close of trading.
