1 month ago
15
Nvidia informed Microsoft this week about a delay affecting the most advanced AI chip models in the Blackwell series. The chips may be delayed by three months or more, potentially impacting Nvidia’s customers, including Meta, Google, and Microsoft Corp. read more
 "Report")
Deliveries of Nvidia's new Blackwell chips are reportedly set to face delays due to a design flaw. AFP
Nvidia’s upcoming artificial intelligence chips are facing significant delays due to design flaws. The delays, which could extend by three months or more, are likely to impact major customers such as Meta, Google, and Microsoft.
Two unidentified individuals involved in the production of the chips and server hardware disclosed these issues to The Information.
According to the media outlet’s report which cites two unidentified sources, Nvidia thsi week notified Microsoft about delays affecting the most advanced AI chip models in the Blackwell series.
As a result, substantial shipments of these chips are not expected until the first quarter of 2025. Despite these delays, a spokesperson for Nvidia stated that “production is on track to ramp” later this year but declined to comment on communications with customers.
Antitrust scrutiny intensifies
The delay news compounds Nvidia’s ongoing troubles, as the company is already under investigation for potential antitrust violations.
In a separate article, The Information reported that the US Department of Justice (DOJ) is probing Nvidia following complaints from its competitors, with inquiries reportedly reaching out to companies such as Advanced Micro Devices (AMD).
The complaints include allegations that Nvidia has threatened customers who purchase competitors’ products and concerns about its recent acquisitions bolstering its dominance in AI software development.
Investor confidence shaken
Adding even more to Nvidia’s challenges, hedge fund Elliott Management has advised investors against placing their money in the company.
In a letter seen by Financial Times, Elliott Management criticised Nvidia investors for being in a “bubble land” and described the AI sector as “overhyped,” citing doubts about its cost-effectiveness and practical applications.
In recent times, Nvidia has experienced a remarkable surge, growing over 600 per cent since January 2023. In June, it briefly surpassed Apple and Microsoft to become the world’s most valuable company, with a market valuation of $3.34 trillion.
As Nvidia navigates these multifaceted challenges, the tech industry will be closely monitoring the company’s ability to address design flaws and regulatory scrutiny while maintaining its market position amidst the AI boom.
){kind=tracking}
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
)
English (US) ·