Microsoft, Google, Meta impacted as Nvidia’s new AI chip is delayed: report

Last-minute design flaws have forced Nvidia (NASDAQ:NVDA) to delay the launch of its latest artificial intelligence chips by at least three months, affecting customers such as Meta (NASDAQ:META), Google (NASDAQ:GOOG) (GOOGL), and Microsoft (NASDAQ:MSFT), The Information reported.

The tech giants have collectively ordered tens of billions of dollars worth of the chips. The product was unveiled in March as part of Nvidia’s (NVDA) Blackwell GPU architecture.

This week, Nvidia (NVDA) informed Microsoft (MSFT), one of its top clients and a large cloud provider, about the delay, according to a Microsoft (MSFT) staff member and another source with direct knowledge of the matter.

In May, CEO Jensen Huang said a large number of Blackwells are expected to arrive later this year. However, design problems encountered unusually late in manufacturing have forced the company to run new test production runs with the chipmaker Taiwan Semiconductor Manufacturing Company (TSM).

As a result, NVDA’s clients will have to wait until the first quarter to receive large shipments, a delay that could also have a potential financial impact on the Santa Clara, California-based firm.

During an earnings call in May, Huang said, “We will see a lot of Blackwell revenue this year,” a projection reflected in Wall Street’s estimates. Keybanc Capital Markets forecasted that the Blackwell chips could help Nvidia’s (NVDA) generate more than $200B in data center revenue in 2025, up from $47.5B in 2024.