Amazon's (AMZN) cloud computing division, AWS, announced that its new systems featuring NVIDIA's (NVDA, Financial) Blackwell chips are now anticipated to launch early next year, later than originally planned. NVIDIA had previously indicated that partners like Amazon would have Blackwell-based products ready by the end of 2024. However, adjustments in NVIDIA's chip design have delayed Amazon's efforts to integrate a large volume of chips into its data centers.
Matt Garman, AWS's CEO, mentioned that NVIDIA's timeline has shifted. Although early samples are available, they expect mass production samples only by early next year following NVIDIA's redesign to boost output. Investors are keenly observing the timeline for NVIDIA's latest product to reach customers, as demand for its AI chips remains strong. Despite production delays, NVIDIA anticipates generating billions in revenue from the processor by the fourth quarter.
Garman highlighted that AWS aims to be the first to deploy these new chip-based systems on a large scale, gaining unique insights into Blackwell's progress. Dell Technologies (DELL) also announced plans to launch Blackwell-based servers by early 2025. Data center operators utilize NVIDIA chips to develop AI software and services, although NVIDIA acknowledged in August the higher-than-expected production challenges for Blackwell and is working on improvements to enhance output.
NVIDIA CEO Jensen Huang assured that once these changes are implemented, they expect a substantial supply and the capability to increase production.
