Nvidia's major customers face delays due to AI chip architecture failures, falling more than 5% before the market opens

Some of Nvidia's largest customers are facing new delays in installing and running its most advanced artificial intelligence chips in data centers. The first batch of racks equipped with Nvidia's latest chip, Blackwell, were plagued by overheating and failures in the way the chips were connected, according to three people who work at suppliers and two customers who have dealt with the problems. Such defects are not uncommon for new chips, but they are delaying data center plans for customers such as Microsoft. In response, Microsoft and three other large customers, including Amazon, Google and Meta, recently cut some orders for Nvidia's Blackwell GB200 racks. Some of these customers are waiting for a higher version of the rack, which may not be available until the second half of this year, or plan to buy Nvidia's older artificial intelligence chips, according to Nvidia and Microsoft employees who are familiar with the plans. Other important customers may try to buy Blackwell chips individually, even though Nvidia promotes racks as the best way to maximize the use of chips. If Nvidia and its suppliers resolve these failures, customers may change their strategy and buy more racks. It is reported that Nvidia fell more than 5% before the market opened. (Jinshi)