Nvidia shares free fall

Shares of Nvidia plunged after reports of problems with the company’s new artificial intelligence chips.

In recent days it was reported that Nvidia’s new artificial intelligence chips, known as “Blackwell”, which entered the market late, have caused problems for servers, because they overheat, causing some customers to worry that there is not enough time to They do not set up new data centers.

Blackwell GPUs overheat when connected to each other in server racks designed to hold 72 chips.

According to Nvidia employees, as well as customers and suppliers aware of the problem, the chipmaker has asked its suppliers to change the design of the racks several times to solve the overheating problems.

Following this incident, Nvidia’s stock value fell by 3.4% on Monday; This news was published before the artificial intelligence chip maker’s earnings report.

“Nvidia works with leading cloud service providers as an integral part of our engineering team and process,” a company spokesperson told Reuters in a statement. “Engineering iterations are normal and expected.”

Nvidia unveiled the Blackwell chips in March and had previously announced they would be available in the second quarter before being delayed. The delay affected customers such as Meta, Google, and Microsoft. Nvidia’s “Blackwell” chip is 30 times faster in tasks such as providing answers to chatbots.

This is not the first time that problems have been reported with the company’s Blackwell products. In August, The Information reported that the leading maker of artificial intelligence chips was struggling with design flaws related to Blackwell’s chips themselves.

Nvidia confirmed Blackwell’s production delay in its earnings report in late August. The company has not publicly confirmed any design flaws or overheating issues.