Editor’s Note: The story has been updated to include a response from a Nvidia spokesperson
Nvidia Corporation (NASDAQ:NVDA) has reportedly encountered delays in the production of its upcoming AI chips due to design issues. This setback is expected to impact major clients including Meta Platforms Inc. (NASDAQ:META), Alphabet Inc.’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google, and Microsoft Corporation (NASDAQ:MSFT).
What Happened: The delay was reported last week by The Information, which cited two anonymous sources involved in the chip’s production and server hardware.
The delay could extend for three months or more, affecting the delivery of the advanced AI chip models in the Blackwell series, reported Bloomberg.
Nvidia informed Microsoft about the delay earlier this week, according to an unidentified Microsoft employee and another source. As a result, large shipments of the Blackwell series are now expected in the first quarter of 2025, the report noted.
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The AI chip company introduced its Blackwell chip series in March, following the release of its previous flagship AI chip, the Grace Hopper Superchip, which was designed to accelerate generative AI applications.
While Nvidia declined to comment on its customer communications regarding the delay, a spokesperson assured that “production is on track to ramp” later this year.
A Nvidia spokesperson addressed the ongoing discussion about the company’s Hopper architecture. They told Benzinga, “As we’ve stated before, Hopper demand is very strong, broad Blackwell sampling has started, and production is on track to ramp in 2H. Beyond that, we don’t comment on rumors.”
Why It Matters: This delay comes at a time when Nvidia’s AI chips are in high demand. Last month, AI infrastructure startup CoreWeave co-founder and CEO Mike Intrator highlighted the “relentless” demand for Nvidia’s AI chips.
“The market that we are seeing — and we are very close to the true demand for this infrastructure — is relentless. It has been in a state of severe disequilibrium for the past two and a half years,” Intrator stated at the time.
Previously, it was also reported that Nvidia has been developing a new version of its flagship AI chip for the Chinese market amid U.S. export restrictions. The chip, named “B20,” was part of the Blackwell series and was set to be mass-produced later this year.
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