Nvidia, the technology giant specializing in graphics cards, has announced the resolution of design issues affecting their upcoming Blackwell GPUs, clearing the way for their planned launch later this year. This news comes at a time of growth for the company, which has reported record revenues driven by increasing demand for artificial intelligence technologies.
Overcoming technical obstacles
Colette Kress, Nvidia’s CFO, confirmed during the third quarter financial results conference call for 2024 that the company has successfully implemented a change in the mass production of Blackwell GPUs. This adjustment aims to improve production performance, thereby resolving issues that had caused shipment delays.
“Production of Blackwell is scheduled to begin in the fourth quarter and continue into fiscal year 2026,” stated Kress, alleviating concerns about potential extended delays.
Demand surpassing supply
One highlight mentioned by Kress is the extraordinary demand platforms Blackwell are experiencing. According to her, “Demand for Blackwell platforms far exceeds supply and we expect this trend to continue into next year.” This situation suggests a promising future for Nvidia’s new product line, despite initial challenges.
Technical details and expectations
Jensen Huang, Nvidia’s CEO, provided more details on the current development status of Blackwell. “We are testing functional samples of Blackwell – Grace Blackwell in a variety of system configurations at this time,” stated Huang. Additionally, he clarified that no functional changes were needed in Blackwell, indicating that the changes focused primarily on production aspects.
Financial impact
The company expects Blackwell to generate “several billion dollars in revenue” during the fourth quarter of 2024. This projection is part of an already impressive financial context, with Nvidia reporting total revenues of $30 billion in their latest quarterly report.
Particularly notable is the performance of the data center division, which contributed $26.3 billion, representing a 154% increase from the same period last year.
Market perspectives
Huang attributes this financial success to the growing demand for accelerated computing and generative artificial intelligence solutions. “Nvidia achieved record revenues as global data centers are working at full capacity to modernize the entire computing stack,” commented the CEO.
In summary, the resolution of Blackwell’s design issues marks a significant milestone for Nvidia, allowing them to maintain their leadership position in the high-performance GPU market. With demand exceeding supply and expectations of billions in revenue, Nvidia seems well-positioned to capitalize on the growing interest in AI and accelerated computing technologies.
The tech industry will undoubtedly be watching Nvidia’s next moves closely, especially as the official launch of Blackwell GPUs approaches in the fourth quarter of this year.