Nvidia Blackwell Chip Deployment Delays Possible

Nvidia's highly anticipated Blackwell AI chips are facing significant overheating issues when installed in high-capacity server racks, potentially leading to delays in data center deployments for major clients like Meta, Google, and Microsoft. The overheating problems arise when the chips are configured in servers with up to 72 processors, consuming substantial power and generating excessive heat. Nvidia has requested multiple design changes from its suppliers to address these thermal challenges. Despite these setbacks, Nvidia maintains that such engineering iterations are normal and expected as part of the development process. The delays could disrupt the intended timeline for the chips' rollout, initially scheduled for the second quarter of 2024, but Nvidia has not officially notified customers of any postponement. The Blackwell chips promise significant performance improvements, being 30 times faster for AI tasks, and are crucial for Nvidia's continued dominance in the AI chip market.