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After facing delays for its new Blackwell artificial intelligence chips, Nvidia (NVDA+3.20%) reportedly has a new problem — one that has its customers worried.
The Information, citing unnamed sources familiar with the matter, reports that Nvidia has repeatedly asked its suppliers to change the design of its custom-designed server racks in recent months because its Blackwell AI chips are overheating when connected. Nvidia’s customers are reportedly worried about a delay for the server racks, which combine 72 of the AI chips in hope that larger AI models can be trained faster with more chips.
The redesigns are being made later than usual in the production process, The Information reports, but Nvidia could still ship the server racks on schedule, which it set at the end of the first half of next year.
On Sunday, Dell (DELL-0.20%) chief executive Michael Dell posted on X that Nvidia’s GB200 NVL72 server racks are shipping, and that Dell had delivered server racks to CoreWeave.
“NVIDIA GB200 systems are the most advanced computers ever created. Integrating them into a diverse range of data center environments requires co-engineering with our customers,” an Nvidia spokesperson said in a statement. “While our customers race to be first to market, NVIDIA is working with leading CSPs as an integral part of our engineering team and process. The engineering iterations are normal and expected.”
Nvidia’s production and shipping delays for Blackwell were also caused by a design flaw, Nvidia chief executive Jensen Huang said in October, after media reports surfaced in August. The Blackwell computer involved seven new chip designs that needed to be developed and put into production simultaneously, Huang said. The chipmaker had to work with its partner, Taiwan Semiconductor Manufacturing Company (TSM-1.37%), to resolve the engineering setback.
“It was functional, but the design flaw caused the yield to be low,” Huang said. “It was 100% Nvidia’s fault.”
Nvidia is set to report earnings for the fiscal third quarter on Wednesday. The AI chipmaker is expected to report revenues of $33 billion for the third quarter of fiscal year 2025, according to analysts’ estimates compiled by FactSet (FDS+0.44%). Net income is expected to be $17.4 billion and earnings per share is expected to be $0.75.
Nvidia stock was down by about 2.5% during Monday morning trading, but the shares are up about 187% so far this year.