Nvidia AI chips delay likely to cost big to Microsoft, Meta and Google: Here’s everything you need to know

tech.hindustantimes.com:

Nvidia's delayed release of new artificial intelligence chips by three months or more can affect Google, Meta, and Microsoft, as they are the company's customers, according to a news report by Reuters. 

The tech publication The Information on August 2 first shed light on irregularities in the design of the upcoming AI chips as the reason behind the delayed launch.

Also Read: Nah, F*ck That: Mark Zuckerberg to NVIDIA CEO Jensen Huang while discussing Apple's closed system

Further, the report revealed that the delayed launch may impact Nvidia's customers like Alphabet's Google, Meta Platforms, and Microsoft, as these tech companies have placed orders for chips worth tens of billions of dollars. The report cited people involved in the production of server hardware and chips at Nvidia.

Following the launch of its flagship Grace Hopper AI Superchip, developed to speed up generative AI applications, Nvidia released Blackwell AI chips, as reported by Reuters.

Also Read: iPhone, Mac and iPad users, update software urgently to avoid getting hacked - Check Indian Government's alert

“As we've stated before, Hopper demand is very strong, broad Blackwell sampling has started, and production is on track to ramp in the second half,” a spokesperson for Nvidia told Reuters via email.

While Google and Meta did not respond to queries, Microsoft declined to comment, saying that “it had nothing to add,” Reuters reported.

According to The Information report, Nvidia informed key cloud service providers like Microsoft about the potential delay in chip production this week. It also cited someone working at Microsoft and another individual with insights into the matter. This major delay means that Nvidia's customers won't receive their large orders until the upcoming quarter of 2025.

Also Read: RBI rolls out new authentication methods for digital payments, alternatives to SMS-based OTPs: Check details

Nvidia's share prices saw a close to 13 percent surge, adding up to a $330 billion value in