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NVIDIA's production of B200 AI chips delayed due to design fault
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Aug 3, 2024
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Generative AI Infrastructure

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Aug 3, 2024

NVIDIA's production of B200 AI chips delayed due to design fault

Product updates

  • NVIDIA has reportedly informed Microsoft and other cloud providers of a significant delay in the production of its "Blackwell" B200 AI chips. A design flaw discovered late in the production process has caused this unexpected delay.

  • The B200 chips, successors to the widely used H100 chips, are designed to power a wide spectrum of tasks within the AI cloud environment. These chips have a reputation for being difficult to secure due to their high demand, and NVIDIA's position as one of the world's top-value companies is largely due to their success.

  • NVIDIA is actively addressing the production setback. The company has collaborated with Taiwan Semiconductor Manufacturing Company for additional testing and anticipates mass production and shipping of the Blackwell chips to commence early next year.

  • Analyst QuickTake: The report follows NVIDIA's announcement in March 2024 regarding the B200, part of the Blackwell architecture. It is scheduled for release in the latter half of 2024 and is expected to have an annual AI chip refresh cycle to compete with AMD. Any delay will impact NVIDIA's earnings and the broader tech market.

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