Nvidia’s Blackwell AI chips overheating in servers: report

Nvidia’s (NASDAQ:NVDA) new Blackwell AI chips have run into issues with overheating servers, creating concerns from customers that they won’t have enough time to open new data centers, The Information reported Sunday.

According to the report, the Blackwell graphics processing units overheat when they are connected together with server racks that are designed to hold up to 72 chips, sources familiar with the issue said.

Nvidia staffers who have been taking on the issue reportedly said the company has repeatedly asked suppliers to change the design of the racks to avoid overheating problems, The Information reported.

“Nvidia is working with leading cloud service providers as an integral part of our engineering team and process,” a Nvidia spokesperson told Seeking Alpha in a statement. “The engineering iterations are normal and expected.”

The Blackwell chips were unveiled in March, and Nvidia said before that the chips would ship in the second quarter before delays occurred.