Nvidia’s AI Chip Delays Expected To Impact Major Tech Companies

Nvidia Corp.’s next-generation artificial intelligence (AI) chips are experiencing delays due to design flaws, according to a report by The Information. The delay, which could extend to three months or more, is expected to affect some of Nvidia’s biggest customers, including Meta, Google, and Microsoft. As a result, large shipments of the chips might not be available until the first quarter of 2025.

An unnamed Microsoft employee revealed that Nvidia had previously informed the company about a delay in the release of the Blackwell series, the most advanced AI chip model. Nvidia introduced the Blackwell series earlier in March, aiming to succeed its Grace Hopper Superchip, which was designed to enhance generative AI applications.

Despite the reported delay, an Nvidia spokesperson assured The Information that “production is on track to ramp” later this year but declined to comment further on customer communications. Meanwhile, Amazon, Google, Meta, and Microsoft declined to comment on the report.

Key Takeaways:

• Delay Duration: Estimated to be around three months or more.
• Affected Companies: Meta, Google, and Microsoft.
• Impact: Delayed AI chip shipments may stall AI advancements for major tech firms.
• Future Outlook: Shipments may not occur until the first quarter of 2025.