Nvidia’s new chips won’t be foolproof, though.
The red-hot chips are literally red-hot. Reports of Blackwell chips overheating spooked the market earlier this week. BI’s Emma Cosgrove spoke to one of the top chip analysts, who said the issues are “overblown.”
Still, Blackwell customers need to invest in liquid cooling solutions to ensure they operate as efficiently as possible.
It’s another cost companies investing in AI chips need to consider in addition to the energy required to fuel them, which has been a headache for tech giants.
There’s also the fear that what you buy won’t last you long, as Nvidia has pledged to release a new chip every year. (Keeping that promise hasn’t been easy.)
The aggressive product roadmap might be a win for Nvidia investors, but it poses problems for everyone else. The constant release of new, better chips could seriously strain budgets.
It complicates how firms account for their investments. A faster depreciation means customers won’t be able to spread out the cost of the chips across several years.
Some analysts are already taking notice. Barclays trimmed earning estimates next year by as much as 10% for some of the biggest buyers of AI chips, like Meta, Amazon, and Alphabet.
