A new report from The Information reveals that NVIDIA has informed Microsoft and at least one other cloud service provider that the production of its Blackwell B200 AI chip will take at least three months longer than expected.
The B200 chips are the successor to the wildly popular and hard-to-find H100 chips that power much of the AI cloud infrastructure and have helped make NVIDIA one of the world’s most valuable companies. The company expects production of the chip to “increase in the second half of the year,” but has not commented on further rumors.
Apparently the delay is due to a design flaw discovered at an unusually late stage in the manufacturing process, according to two anonymous sources, including a Microsoft employee. According to the report, NVIDIA is currently conducting new tests with chipmaker Taiwan Semiconductor Manufacturing Company (TSMC) and will not ship large quantities of Blackwell chips until the first quarter of next year. This delay could have a significant impact on the market, considering that Microsoft, Google, and Meta have already ordered “tens of billions of dollars” of these chips.
The news comes just months after NVIDIA announced a new annual release cycle for its AI chips, while other companies like AMD are working to develop their own competitors. The delay in the production of the Blackwell B200 could give NVIDIA’s rivals an advantage, which could use the situation to gain market share.
The delay in the launch of the Blackwell B200 chip is a setback for Nvidia, but the company remains confident in its ability to solve the problem and bring a cutting-edge product to market. In the meantime, the wait for the Blackwell B200 continues, with hopes that the new chip will meet the high expectations of the market and further push the limits of artificial intelligence. Even if last Friday, AI sent stocks into a nosedive.
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