Overview

• 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.