Nvidia Corporation’s launch of its Blackwell AI chips has hit a big challenge, as overheating problems in the accompanying server racks affect customers.
The overheating occurs when up to 72 of these cutting-edge graphics processing units (GPUs) are connected in a single server rack, delaying the rollout of essential data centres and potentially disrupting operations for major tech companies.
The Blackwell chips, unveiled in March and expected to ship in the second quarter, were anticipated to boost AI processing with speeds 30 times faster than Nvidia’s previous offerings.
However, the delays have left cloud service providers like Meta Platforms, Google, and Microsoft struggling to adjust their infrastructure plans. These firms rely heavily on Nvidia’s technology to power their AI-driven services and maintain a competitive edge in the industry.
Sources close to Nvidia’s operations have revealed that the company has repeatedly requested its suppliers to modify the server rack designs to address the overheating problem.
While Nvidia’s spokesperson described these adjustments as “normal engineering iterations,” reports reveal that the timing of these changes could disrupt deployment schedules.
The redesign process has placed additional stress on customers who are racing against time to establish next-generation data centres.
With high demand for AI-powered tools like chatbots and advanced analytics, any delay in the availability of the Blackwell platform could impact operational timelines.
Despite the current setbacks, the Blackwell chips come as a huge innovation in AI hardware. Combining two silicon dies into a single unit, Nvidia has achieved outstanding processing power.
The chips are seen as essential for handling complex AI tasks, making them a necessary component for tech giants aiming to expand their AI capabilities.
Analysts had projected Nvidia’s revenue from the Blackwell chips to reach $6 billion in the coming quarter, showing the high demand for this platform.
Nvidia CEO Jensen Huang recently described interest in the Blackwell AI chips as “insane,” emphasising the industry’s reliance on the company’s technological advancements.
The delays come at a time when Nvidia is under pressure to maintain its top place in the AI hardware market.
The company’s recent market valuation of $3.482 trillion reiterates its indispensability in the tech world, but challenges like these could open opportunities for competitors such as AMD and Intel to close the gap.
While Nvidia has not officially informed customers of further shipment delays, the adjustments to the server rack designs suggest ongoing work to resolve the overheating issues.
