Nvidia's new AI chip delay due to design flaws to affect Amazon, Google, and Microsoft: Report

Nvidia's upcoming Blackwell AI chip will be delayed due to design flaws, affecting Amazon, Google, and Microsoft, which have paid tens of billions of dollars

Nvidia Corp.’s upcoming artificial intelligence (AI) chips will be delayed because of design flaws, The Information reported, citing two unnamed sources part of the chip and server hardware production. HT couldn't independently verify the information.

President and CEO of Nvidia Corporation Jensen Huang delivers a speech during the Computex 2024 exhibition in Taipei, Taiwan, June 2, 2024. (Chiang Ying-ying/AP)

Which are the tech companies that will be affected due to the Nvidia chip delays?

The delay, which is estimated to be around three months or even more, could directly affect some of Nvidia's biggest customers, which includes Meta, Google, and Microsoft. The delay means that big shipments can't be expected until the first quarter of 2025, according to the report.

All these tech giants have collectively ordered tens of billions of dollars' worth of chips together from Nvidia.

Nvidia had informed Microsoft earlier about a delay in the most advanced AI chips model of the Blackwell series, according to the report which cited an unnamed Microsoft employee.

What is the Nvidia Blackwell series AI chip?

Nvidia had unveiled the Blackwell chip series earlier in March this year. The Blackwell series was to succeed Nvidia's previous flagship, the Grace Hopper Superchip, which in turn was designed to speed up generative AI applications.

An Nvidia spokesperson told The Information that “production is on track to ramp” later this year, but declined to comment on its statements to customers. Amazon, Google, Meta, and Microsoft on the other hand, declined to comment to the Information.