🤔 This week: TSLA Q3 earnings report - is now the right time to buy the EV giant?Explore TSLA Data

Nvidia's design flaw with Blackwell AI chips now fixed, CEO says

Published 10/23/2024, 06:24 AM
Updated 10/23/2024, 06:36 AM
© Reuters. FILE PHOTO: NVIDIA logo is seen near computer motherboard in this illustration taken January 8, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
NVDA
-

By Jacob Gronholt-Pedersen and Supantha Mukherjee

COPENHAGEN/STOCKHOLM (Reuters) - Nvidia (NASDAQ:NVDA) CEO Jensen Huang said on Wednesday a design flaw with its latest Blackwell AI chips which impacted production has been fixed with the help of longtime Taiwanese manufacturing partner TSMC.

Nvidia unveiled Blackwell chips in March and had earlier said they would ship in the second quarter but were delayed, potentially affecting customers such as Meta Platforms (NASDAQ:META), Alphabet (NASDAQ:GOOGL)'s, Google and Microsoft (NASDAQ:MSFT).

"We had a design flaw in Blackwell," Huang said. "It was functional, but the design flaw caused the yield to be low. It was 100% Nvidia's fault."

According to media reports, the delay in production had caused tensions between Nvidia and TSMC but Huang dismissed that as "fake news".

"In order to make a Blackwell computer work, seven different types of chips were designed from scratch and had to be ramped into production at the same time," he said.

"What TSMC did, was to help us recover from that yield difficulty and resume the manufacturing of Blackwell at an incredible place."

Nvidia's Blackwell chips take two squares of silicon the size of the company's previous offering and binds them together into a single component that is 30 times speedier at tasks like serving up answers from chatbots.

© Reuters. FILE PHOTO: Nvidia CEO Jensen Huang present NVIDIA Blackwell platform at an event ahead of the COMPUTEX forum, in Taipei, Taiwan June 2, 2024. REUTERS/Ann Wang/File Photo

At a recent Goldman Sachs conference the CEO said the chips will now ship in the fourth quarter.

Huang was in Denmark on Wednesday to launch a new supercomputer named Gefion, which boasts 1,528 graphic processing units (GPUs) and was built in partnership with Novo Nordisk (NYSE:NVO) Foundation, Denmark's Export and Investment Fund and Nvidia.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.