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Nvidia is urgently addressing overheating problems in its new Blackwell AI chips when integrated into customized server racks, causing anxiety among major clients like Microsoft and Meta. The company is collaborating with suppliers to redesign the racks and prevent potential delays ahead of its November 20 earnings report.
Overheating Concerns Raise Alarms for Nvidia's Blackwell AI Chips
According to a claim that was published by The Information on Sunday afternoon, the new Blackwell AI chip from Nvidia is reportedly experiencing problems with overheating when it is connected in bespoke server racks.
Due to the fact that anxious clients are concerned about delays, the company is currently working with its suppliers to modify the design of the racks in order to ease the problem of overheating.
Prior to the opening of the market on Monday, shares fell by 2.9%.
Blackwell has already been delayed by a quarter as a result of design problems that have since been resolved by the leader in artificial intelligence chips.
High-Stakes Release for Major Clients
A sophisticated artificial intelligence system is created by the new server racks, which unite 72 Blackwell chips. Customers of significant importance, such as Microsoft, Meta, and Elon Musk's xAI, have been eagerly anticipating the arrival of the new Blackwell server enclosures.
While it is common for Nvidia to make modifications to server designs prior to a launch, it is believed that the modifications to the Blackwell racks will be made at a later stage in the game.
Therefore, it is possible that Nvidia may still be able to deliver the racks to consumers on time, and the company has not informed customers of any delays that may occur, Reuters explains.
Anticipation Builds Ahead of Nvidia Earnings
One of the representatives from Nvidia declined to comment to The Information regarding whether or not the designs for the Blackwell rack have been finalized.
Before the company's earnings report is released on Wednesday, November 20th, all eyes are on Nvidia. Nvidia's stock has increased by 187% so far this year.
