The editor of Downcodes learned that Nvidia CEO Jensen Huang recently accepted an interview and responded to the production delays of the new generation AI processor Blackwell. Although Blackwell's release has been postponed to the end of the year, he insisted that Nvidia will still stick to its plan to release a new flagship product every year, and said that the development of the subsequent two generations of products is progressing as planned. The delay was mainly due to technical issues that arose during the cooperation with TSMC, causing the company's stock price to fall and causing investor concerns. Huang Renxun explained that the problem lies in the "mask" in the chip design and printing process. The adjustment has been completed and Blackwell will begin mass production in the fourth quarter of the fiscal year ending in January 2025.
He emphasized that Nvidia is using AI technology to improve its own productivity, and said that even if profit margins have declined, the overall demand trend has not been affected. Although some analysts have lowered their expectations for Nvidia's gross profit margin, Huang Renxun remains confident in the company's future development and believes that this will not affect the overall demand for AI computing solutions. NVIDIA accelerates the pace of innovation to maintain its leading position in the highly competitive market and meet the growing demand for AI computing power.
Recently, however, Nvidia has faced some last-minute technical issues while working with partner TSMC, which has delayed Blackwell's full release until the end of the year. Such delays have investors concerned about Nvidia's growth rate and profit margins, causing the company's stock to slide on Thursday.
Despite this, Huang Renxun said that the research and development of the next two generations of products is still progressing as planned. "Our engineers are working hard to develop the next two generations of chips, and they will definitely be able to complete it within this one-year cycle."
NVIDIA's main reason for accelerating the pace of innovation is to maintain its leading position in an increasingly competitive market. Companies like Meta and OpenAI are relying on Nvidia's GPUs to train large language models, and demand for such products has already exceeded supply.
When faced with analysts' questions about how customers can benefit from huge investments in AI infrastructure, Huang Renxun revealed that Nvidia itself is using AI to accelerate data processing and product design and improve productivity. “We couldn’t design our chips without generative AI,” he said. “Our engineers are much more efficient with the help of AI.”
Regarding Blackwell's production problems, Huang Renxun explained that they are mainly related to the "mask" used in the chip design and printing process. In order to improve Blackwell's manufacturing yield, they made necessary adjustments. "The mask changes have been completed and there are no functional changes." He said that Blackwell will begin mass production and deliver to customers within the fourth quarter of the fiscal year ending in January 2025.
Although the company expects profit margins to decline in the coming months, Nvidia's financial chief said the changes will not affect overall demand trends.
Some Wall Street analysts have begun to lower their expectations for Nvidia's gross profit margin, and Matthew Ramsay pointed out that the challenge of trying to imitate the iPhone's annual release cycle is huge, but this does not reflect changes in the overall demand for AI computing solutions.
Highlight:
Nvidia CEO Jensen Huang said he will stick to his plan to launch a new flagship AI chip every year despite production delays.
? NVIDIA's stock price fell due to production problems with Blackwell chips, and investors were concerned about future growth.
Nvidia is using AI technology to improve productivity, and future product development is still proceeding as planned, without changing the overall demand trend.
All in all, despite facing production delays and stock price fluctuations, NVIDIA remains confident in the future development of the AI chip market and stated that it will continue to adhere to its innovation strategy and maintain its leading position in the industry. The editor of Downcodes will continue to pay attention to NVIDIA's subsequent developments.