Nvidia Corp’s (NASDAQ:NVDA) Blackwell chips will not be available before early 2025, affecting key clients like Amazon.com Inc’s (NASDAQ:AMZN) cloud unit.

The artificial intelligence chip designer’s production challenge prompted Amazon Web Services to wait for bulk volumes of the chip to be produced for its data centers.

Amazon Web Services chief Matt Garman flagged the delay due to Nvidia’s production respin on Bloomberg Television.

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Dell Technologies Inc (NYSE:DELL) also voiced similar timelines for the availability of its Blackwell-based servers.

Recently, Nvidia chief Jensen Huang dispelled concerns over progress in developing Blackwell GPUs by citing tremendous demand for Nvidia’s Blackwell GPU, whose production is going as planned. KeyBanc analyst John Vinh expected Blackwell to generate over $7 billion in revenues in the fourth quarter.

Beth Kindig of I/O Fund projected that the Blackwell chips would help Nvidia reach a $10 trillion valuation by 2025. JPMorgan analyst Harlan Sur snubbed the lack of impact of Blackwell’s production delays on AI demand from the hyperscalars.

Earlier this week, Amazon.com inked a five-year deal with AI and data startup Databricks to offer businesses more affordable AI development tools. The collaboration focused on utilizing Amazon's Trainium AI chips, a cost-efficient alternative to Nvidia's widely used GPUs.

Databricks aims to transfer the cost savings from using Amazon's chips to its customers, allowing it to challenge Nvidia’s dominance in the market.

Investors can gain exposure to Nvidia through SPDR Select Sector Fund – Technology (NYSE:XLK) and iShares S&P 500 Growth ETF (NYSE:IVW).

Price Action: NVDA stock is up 0.84% at $138.09 at the last check Friday.

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