 "NVIDIA's new server design hits a roadblock, AI chips overheating beyond control")
NVIDIA’s plans for its highly anticipated Blackwell graphics processing units have hit a snag. Recent reports reveal that the company has had to rethink the design of its server racks due to serious overheating issues.
The Blackwell chips, which are intended to be packed tightly in server racks holding up to 72 units, are apparently getting too hot to handle. This overheating dilemma has sparked concerns about potential delays for NVIDIA’s latest AI powerhouse, the Information reported, citing unnamed company insiders and suppliers.
The problem has proven tricky to fix. NVIDIA has reportedly asked suppliers to make several changes to the server rack design in a bid to solve the heating crisis. Employees, customers, and suppliers with direct knowledge of the situation confirmed that these last-minute modifications have been necessary.
However, a spokesperson from NVIDIA downplayed the issue, explaining that working with cloud service providers and going through various engineering iterations is all part of the process.
Blackwell’s Engineering Setbacks
The Blackwell chips are NVIDIA’s next big leap in AI hardware. Each component combines two massive silicon squares and promises a performance boost, said to be 30 times faster for AI tasks like chatbot responses.
Unveiled in March, the chips were initially slated for shipment in the second quarter. But as overheating concerns surfaced, those timelines began slipping. While NVIDIA hasn’t officially announced delays to its clients, the late-stage design changes are a worrying sign, especially for major customers like Meta, Google, and Microsoft.
Will Delays Impact NVIDIA’s Growth?
It’s not the first time Blackwell has faced setbacks. Earlier development hiccups had already pushed the release back by at least one quarter. The ongoing rack redesigns only add to the uncertainty. NVIDIA has yet to confirm if the new server designs are finalised, and the looming question is whether these issues will impact upcoming shipments or cause further disruptions.
As NVIDIA, the world’s most valuable company by market cap, gears up to release its quarterly earnings on November 20, all eyes are on how these engineering hurdles might influence its AI-driven ambitions and broader market trajectory.
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