NVIDIA AI Chip Racks Overheat, Microsoft and Others Cut Orders

According to U.S. media reports, major artificial intelligence (AI) chip manufacturer NVIDIA has faced overheating issues with its latest Blackwell chips, leading to order reductions for the Blackwell GB200 racks by key clients such as Microsoft.

Technology news site The Information cited sources stating that the first racks equipped with NVIDIA's Blackwell chips have experienced overheating problems, along with connection faults between the chips.

Reports indicate that major clients, including Microsoft, Amazon's cloud computing division, Google, and Meta Platforms, the parent company of Facebook, have recently reduced some of their orders for NVIDIA's Blackwell GB200 racks.

As a result, NVIDIA's stock saw a drop of more than 4% during early trading.

None of the companies involved, including NVIDIA, Microsoft, Google, Meta, and Amazon, immediately responded to requests for comment.

The report also mentions that these large-scale clients had already placed orders for at least $10 billion worth of Blackwell racks. Some are waiting for updated versions of the racks, which may not be available until the second half of the year, or are considering purchasing older AI chip models from NVIDIA.