Nvidia Reportedly Delays Next-Generation Blackwell AI Chip Due to Design Flaw

Nvidia has reportedly delayed the launch of its next-generation Blackwell B200 AI chips by at least three months due to a design flaw discovered late in the production process. Mass shipments are now expected to begin in early 2025. This delay was communicated to key customers, including Microsoft, which has significant orders for the chips. The B200 chips were intended to replace the highly successful H100 chips, which have significantly boosted Nvidia's sales and stock performance. The company is currently conducting new test runs with Taiwan Semiconductor Manufacturing Co. (TSMC), the manufacturer of Nvidia's chips. An Nvidia spokesperson did not comment on the delay but stated that production is on track to ramp up later this year. The delay could negatively impact Nvidia's revenue and stock performance, as well as affect TSMC and competitors like Advanced Micro Devices (AMD). Major clients such as Microsoft, Google-parent Alphabet, and Meta Platforms have placed substantial orders for the new chips to support their AI initiatives. Following the news, Nvidia's stock fell 5.1%, while AMD and TSMC also experienced declines. The broader market has been under pressure, with concerns about Nvidia's dominance in the AI sector prompting investigations by the Justice Department.