NVIDIA's CEO Jensen Huang has revealed that the next-gen Blackwell AI product portfolio is already in production and that demand is "insane."
NVIDIA's Blackwell Generation Set To Replace Hopper In Terms of Market Hype & Demand Will Bring A New AI "Gold Rush"
Team Green's Blackwell AI architecture has been a victim of "supposed" delays after it was initially said that the firm had faced an issue with the packaging technology incorporated in the architecture. It was said that NVIDIA would delay Blackwell into Q1 2025, but later on, Jensen revealed that Blackwell is on track, shipping by Q4 2024, but in small quantities. In an interview with CNBC, here is what NVIDIA's CEO Jensen Huang had to say:
The thing that we have done with Blackwell, and what we have announced, this new AI infrastructure generation every single year, and so we're going to update our platform every single year.
And, the reason for that is if we can increase the performance as we've done with Hopper to Blackwell by 2-3x each year we're effectively increasing the revenues or the throughput of our customers on these infrastructures by a couple (2-3x) each year, decrease, or how you can think about it decreasing cost every 2 or 3 years.
- NVIDIA's CEO via CNBC
Another interesting point announced by NVIDIA's CEO in the interview is that the firm is working towards reducing energy consumption by its AI products. However, given the vigorous innovation cycle the firm is currently in, they have faced difficulties in this matter. Jensen claims that everything is on track, and NVIDIA is spot-on regarding following product roadmaps. However, there are inconsistencies present, which we'll talk about next.
It was recently reported by the prominent analyst Ming-Chi Kuo that NVIDIA plans to halt the development of its GB200 NVL36*2 AI server racks and will instead only offer NVL36 and NVL72 servers to its clients. It was said that Team Green is facing manufacturing complexities and that moving with three different AI server configurations is difficult for the firm. While this certainly doesn't mean that the future of Blackwell is at stake, it does show that even a firm as large as NVIDIA is facing manufacturing and supply troubles.
Nvidia $NVDA CEO just said the demand for Nvidia’s next chip Blackwell is “insane” pic.twitter.com/B7IoVnLwwQ
— Evan (@StockMKTNewz) October 2, 2024
NVIDIA's Blackwell architecture is right on its way to being the firm's "most successful" product in its history, and based on the initial impression shown by the likes of Jensen, Blackwell is going to be explosive for the markets.
