Nvidia Faces Setbacks as Blackwell AI GPUs Struggle With Overheating and Design Flaws

Major customers like Microsoft, Amazon, Google, and Meta reduce orders, opting for older Hopper GPUs due to unresolved issues in Nvidia's Blackwell architecture.

Nvidia's Blackwell AI GPU racks have been reported to overheat and experience glitches, particularly in how chips connect to one another.
Key customers, including Microsoft, Amazon, Google, and Meta, have scaled back or delayed orders worth over $10 billion collectively due to these issues.
CEO Jensen Huang admitted in October 2024 that a design flaw in Blackwell GPUs contributed to production delays, calling it '100% Nvidia's fault.'
Some customers are reverting to Nvidia's older Hopper GPUs while awaiting potential fixes or redesigned versions of Blackwell hardware.
The delays in Blackwell shipments, combined with new U.S. government restrictions on AI chip exports, have raised concerns about Nvidia's financial performance and market position.