NVEDIA

According to Odaily, Nvidia's major clients are experiencing delays in deploying its advanced AI chips in data centers. Sources from three suppliers and two customers have reported that the initial racks equipped with Nvidia's latest Blackwell chips are facing issues related to overheating and chip connectivity. Such defects are not uncommon with new chips but are affecting the data center plans of clients like Microsoft. In response, Microsoft, along with Amazon, Google, and Meta, have recently reduced some orders for Nvidia's Blackwell GB200 racks. Employees from Nvidia and Microsoft familiar with the situation indicate that some clients are waiting for upgraded racks, expected to be available later this year, or are considering purchasing Nvidia's older AI chips. Other significant clients might opt to buy Blackwell chips individually, despite Nvidia's recommendation that racks are the best way to maximize chip usage. If Nvidia and its suppliers resolve these issues, clients may reconsider and increase their rack purchases. Nvidia's stock fell over 5% in pre-market trading.