Nvidia’s CEO says the design flaw with the Blackwell GPU is now fixed

• NVIDIA’s CEO Jensen Huang recently announced that the design flaw affecting Blackwell GPU production has been 100% fixed.
• This news is crucial for NVIDIA because the Blackwell GPU is a key product for the company to continue making profits in the AI era.

What happened

NVIDIA‘s CEO Jensen Huang recently announced that they have completely fixed the design flaw affecting Blackwell GPU production. Previously, this design flaw affected the chip’s yield but did not impact its functionality. NVIDIA designed the Blackwell GPU as its next-generation accelerator for the AI and supercomputing markets. It is based on NVIDIA’s Blackwell architecture and aims to provide unprecedented computing power and efficiency. NVIDIA planned to begin mass production of these GPUs in the fourth quarter of 2024. However, packaging problems that caused low yield now require design changes.

Jensen Huang stated that this design flaw is entirely NVIDIA’s responsibility. And the company has already partnered with TSMC to resume Blackwell chip production at an astonishing speed. This development is a huge victory for NVIDIA. Because the demand for AI chips is surging, NVIDIA has positioned itself as a leader in the AI chip sector.

In addition, NVIDIA’s data center business is thriving, with last quarter’s revenue soaring to a record $26.27 billion, a 154% increase compared to the same period last year. This indicates that NVIDIA’s dominance in the AI and data center markets is being solidified.

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Why it is important

NVIDIA has completely fixed the design flaw in its Blackwell GPU that affected production yield. This is great news for the AI market. NVIDIA developed the Blackwell GPU as its next-generation accelerator. It is specifically designed for the AI and high-performance computing markets. Previously, due to design flaws, its production yield was low, necessitating design changes. NVIDIA is expected to start shipping the Blackwell GPU by the end of 2024 after fixing the design flaw. This move will help meet the strong market demand for its AI chips.

Overall, fixing the Blackwell GPU design flaw is an important milestone for NVIDIA. It not only alleviated concerns about the company’s AI chip production but also further solidified its leadership position in the AI chip market. As AI technology advances rapidly, NVIDIA expects the Blackwell GPU to drive significant revenue growth. The company anticipates this growth will continue over the coming years. It will also help drive the growth of the entire AI market.