Nvidia’s chip delay could impact Google, Meta, and Microsoft, a recent report suggests. A delay of three or more months in the launch of Nvidia’s new artificial intelligence chips due to design flaws could affect tech giants like Meta Platforms, Alphabet’s Google, and Microsoft. These companies have collectively ordered billions of dollars’ worth of chips from Nvidia.
Nvidia’s upcoming AI chips, the Blackwell AI chips, were announced in March after the Grace Hopper AI Superchip. The Hopper demand is strong, with Blackwell sampling underway and production set to ramp up in the second half of the year, according to an Nvidia spokesperson.
Microsoft, on the other hand, had nothing additional to say, while Google and Meta did not respond to queries. Nvidia informed Microsoft and another major cloud service provider this week about the potential delay, with big shipments not expected until the first quarter of 2025.
In a remarkable one-day gain on August 1, Nvidia’s share prices soared by nearly 13%, adding around $330 billion in market value to the chip maker. This surge made Nvidia the third most valuable company on Wall Street, behind Apple and Microsoft.
The spike in Nvidia’s shares was driven by high expectations of demand for its processors, especially after Microsoft reported a significant increase in artificial intelligence expenditures. The market cap surge broke Wall Street’s previous record, also set by Nvidia earlier this year.
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