Investing.com — NVIDIA’s (NASDAQ:NVDA) new Blackwell AI chip is reportedly experiencing overheating issues when connected to custom server racks, The Information reported Sunday afternoon. The company is working with suppliers to change rack designs to alleviate the overheating problem as anxious customers worry about delays.
Shares slipped 2.9% in Monday premarket trading.
The AI chip giant already delayed Blackwell by a quarter due to design flaws that have since been fixed.
The new server racks combine 72 Blackwell chips, creating a powerful AI system. Major customers like Microsoft (NASDAQ:MSFT), Meta (NASDAQ:META) and Elon Musk’s xAI have been eagerly awaiting the new Blackwell server racks.
While NVIDIA often adjusts server designs before a launch, changes to Blackwell racks would come late. That said, Nvidia might still be able to deliver the racks to customers on time, and has not informed customers of any delays.
An NVIDIA spokesperson declined to comment to The Information on whether designs for the Blackwell racks have been finalized.
All eyes are on NVIDIA before the results this Wednesday, November 20. NVIDIA stock is up 187% year to date.
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