Nvidia’s Next-Gen AI Chip “Blackwell” B-200 Delayed Due to a Flaw as Investors Become Restless

Nvidia, the world’s most valuable chipmaker, has reportedly delayed its highly anticipated “Blackwell” B-200 artificial intelligence chip, a news that investors are pretty shaken up about. 

The launch date has been pushed back by at least three months due to a design flaw, Tech news outlet The Information claims. Even though Nvidia has been playing its cards close to its chest about the official launch date, its CEO, Jensen Huang, announced recently at the SIGGRAPH event in Denver, Colorado, on July 31 that the company is ready to start dispatching engineering samples “this week.” However, with the recent hiccup causing a delay, it’s still a mystery whether this bump will affect both the B-200 and B-100 series. 

Nvidia $NVDA reportedly may face a delay of 3 months for its B200 GPUs due to a design flaw, though an Nvidia spokesperson said the company expects production to ramp in 2H.$MSFT $META $GOOG $AMD

— Beth Kindig (@Beth_Kindig) August 3, 2024

The AI sector might see huge revenues

The delay could have far-reaching implications, especially for investors on a time crunch with their project launch depending on Nvidia’s chips. Market experts expect that Nvidia could rake in hundreds of billions of dollars from the sale of their B-series AI chips. Big tech players like Amazon, Google, Meta, Microsoft, and a host of other AI companies are expected to be the main customers. Nvidia’s financial success in 2025 will likely depend on its capacity to churn out enough chips to satisfy this customer’s demand. All should be smooth sailing unless, of course, the unexpected happens and things take a turn for the worse. Arguably, if things turn out well, the entire AI sector’s fortunes will look up as well.

Some investors are restless; others speculate Nvidia was “in bubble territory” 

In the wake of Nvidia’s explosive growth since the launch of OpenAI’s ChatGPT (which was trained on Nvidia chips), investment analysts appear to be getting impatient, waiting for the next big thing. The Financial Times recently reported that hedge fund firm Elliott Management sent a letter to investors warning that Nvidia was “in bubble territory.” The letter also stated that current generative AI use cases were “never going to be cost-efficient, are never going to actually work right, will take up too much energy, or will prove to be untrustworthy.”

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