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NVIDIA, breaking news!

2024-08-03

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China Fund News Taylor

There is a problem with Nvidia's chip!

Nvidia AI chip launch delayed due to design flaw

Nvidia's planned artificial intelligence chip has been delayed due to a design flaw, according to The Information, which cited two unnamed people involved in the production of the chip and its server hardware.

The chips could be delayed by three months or more, which could affect Nvidia's customers, including Meta Platforms, Google and Microsoft.

According to an unnamed Microsoft employee, Nvidia notified Microsoft this week thatIts most advanced Blackwell series AI chip models will be delayed in shipment.

Due to these delays, high-volume shipments are not expected to occur until the first quarter of 2025.

Nvidia is under investigation by the US Department of Justice

In addition, the U.S. Department of Justice is investigating an acquisition by Nvidia and whether it engaged in misconduct in the sale of microchips used to support AI applications.

The report said,The U.S. Department of Justice is reviewing Nvidia's acquisition of Israeli startup Run:ai, whose technology enables virtualization of graphics processing units.

U.S. Justice Department officials have reached out to Nvidia’s competitors, including Advanced Micro Devices, with a particular focus on business practices surrounding sales of AI chips. The Justice Department is investigating whether Nvidia pressured cloud service providers to buy a variety of products.

Nvidia issued a statement saying the company "wins on strength", complies with all laws, and will provide any information regulators request.

The tech-heavy Nasdaq Composite Index has recently suffered a correction, down more than 10% from its July 10 high, after earnings reports from several tech giants rocked the market and investors grappled with the durability of AI-focused trading.

Nvidia's stock price has risen 121% so far this year. As of the close of August 2, Nvidia's stock price was $107.27, with a latest market value of $2.6 trillion, down 20% from its high on July 10.