Nvidia CEO Jensen Huang accepted that their latest Blackwell AI chips had a design flaw.
According to Reuters, Huang on Wednesday, October 23, 2024, said that their Blackwell AI chip has a flaw which affected production, but they had fixed it with the help of their longtime Taiwanese manufacturing partner, TSMC.
The comments of the CEO came after the AI chip giant's shares fell by around 2% in early trading.
Huang said, “We had a design flaw in Blackwell. It was functional, but the design flaw caused the yield to be low. It was 100% Nvidia's fault… In order to make a Blackwell computer work, seven different types of chips were designed from scratch and had to be ramped into production at the same time.”
“What TSMC did, was to help us recover from that yield difficulty and resume the manufacturing of Blackwell at an incredible pace,” he further explained.
It was also reported that the production delay caused tension between the tech company and TSMC, but hand denied the claims and called the reports “fake news.”
Furthermore, Nvidia launched Blackwell chips in March 2024, pledging that they would start shipping in the second quarter, which got delayed. As a result, it affected its major customers like Meta, Google, Alphabet’s and Microsoft.
