It looks like NVIDIA's Blackwell GPUs have become a victim of production foes as the firm now expects lower units, topping out at 500K in 2024.
NVIDIA's Blackwell "Design Flaw" Rumors Have Started To Gain Traction As Team Green Is Said To Delay The Lineup By Almost a Quarter, Lower Units To Be Produced In 2024
The reports of NVIDIA's Blackwell products reportedly encountering a roadblock in mass production are hoovering all over the internet, with analysts claiming that the problem is something significant for the firm. In our previous coverage on this topic, NVIDIA responded to us, claiming that Blackwell sampling has already been initiated, but it looks like the situation is a bit different, as new reports claim that NVIDIA has taken a hit with Blackwell design flaws, which is why the firm is reported to witness a drop-down in production volumes this year.
According to JPMorgan, NVIDIA's GB200 "Blackwell" AI servers are expected to see an annual output of 500,000 units from Team Green, a decrease from the anticipated 600,000 units. The financial firm says design flaws are associated with this drop in figures and that NVIDIA is currently conducting engineering design changes, a process that will also take more time and money. This might push the release of Blackwell's AI servers onto the first quarter of 2025, which is around four months ahead of what was planned.
There is uncertainty surrounding Blackwell and its design flaw, but given that Team Green plays a vital role amongst the top tech giants and that NVIDIA's dominance is currently unchallenged, the delay won't have much of an effect, as Bernstein analyst Stacy Rasgon reiterates.
It remains clear that demand levels continue to rise, with all major hyperscalers continuing to grow their capex outlooks. Nvidia's competitive window is so large right now that we don't think a three-month delay will cause significant share shifts.
- Stacy Rasgon via Reuters
The Blackwell delay might open a window for competitors to offer their next-gen AI products, but firms such as AMD and Intel won't have enough time, given that their respective next-gen AI architectures are scheduled to be released by mid-2025. With Blackwell witnessing a delay, it will create a compounding effect, which means that the deployment of large AI clusters by the likes of Microsoft won't be possible until mid-2025, creating further problems for those involved in the AI race.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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