Nvidia’s New AI Chip Delayed Due to Design Flaws: Information

By Yi Wei Wong

August 02, 2024 at 11:37PM EDT

Signage at the Nvidia Corp. offices in Taipei, Taiwan, on Friday, June 2, 2023. Nvidia Chief Executive Officer Jensen Huang is heading to China to meet with tech executives in the world's biggest chip market, despite rising tensions between Washington and Beijing, according to people familiar with the matter. Photographer: I-Hwa Cheng/Bloomberg (I-Hwa Cheng/Bloomberg)

(Bloomberg) -- Nvidia Corp.’s upcoming artificial intelligence chips will be delayed due to design flaws, The Information reports, citing two unidentified people who help produce the chip and its server hardware.

The chips may be delayed by three months or more, which could affect Nvidia’s customers including Meta Platforms Inc., Google LLC and Microsoft Corp.

Nvidia this week informed Microsoft about a delay affecting the most advanced AI chip models in the Blackwell series, according to an unidentified Microsoft employee and another person.

The delays mean big shipments aren’t expected until the first quarter of 2025, The Information added.

A spokesperson for Nvidia wouldn’t comment on its statements to customers about the delay, according to the report, but told The Information that “production is on track to ramp” later this year.

Microsoft, Google, Amazon Web Services and Meta declined to comment to the publication, while a TSMC spokesperson didn’t respond to a request for comment.