New Nvidia AI Chips Face Issue with Overheating Servers, The Information Reports

The logo of NVIDIA as seen at its corporate headquarters in Santa Clara, California, in May of 2022. Courtesy NVIDIA/Handout via REUTERS/File Photo
The logo of NVIDIA as seen at its corporate headquarters in Santa Clara, California, in May of 2022. Courtesy NVIDIA/Handout via REUTERS/File Photo
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New Nvidia AI Chips Face Issue with Overheating Servers, The Information Reports

The logo of NVIDIA as seen at its corporate headquarters in Santa Clara, California, in May of 2022. Courtesy NVIDIA/Handout via REUTERS/File Photo
The logo of NVIDIA as seen at its corporate headquarters in Santa Clara, California, in May of 2022. Courtesy NVIDIA/Handout via REUTERS/File Photo

Nvidia's new Blackwell AI chips, which have already faced delays, have encountered problems with accompanying servers that overheat, causing some customers to worry they will not have enough time to get new data centers up and running, the Information reported on Sunday.
The Blackwell graphics processing units overheat when connected together in the customized server racks the company has designed, the report said, citing sources familiar with the issue, Reuters reported.
The AI chipmaker has asked its suppliers to change the design of the racks several times to resolve overheating problems, according to Nvidia employees who have been working on the issue, as well as customers and suppliers with knowledge of it, the report said without naming the suppliers.
Nvidia did not immediately respond to a request for comment outside regular business hours.
Nvidia unveiled Blackwell chips in March and had earlier said they would ship in the second quarter before encountering delays, potentially affecting customers such as Meta Platforms , Alphabet's Google and Microsoft.
Nvidia's Blackwell chip takes two squares of silicon the size of the company's previous offering and binds them into a single component that is 30 times speedier at tasks like providing responses from chatbots.



Tata Seals Deal with Pegatron for iPhone Plant in India's Tamil Nadu

FILE PHOTO: Apple iPhones are seen inside India's first Apple retail store during a media preview, a day ahead of its launch in Mumbai, India, April 17, 2023. REUTERS/Francis Mascarenhas/File Photo
FILE PHOTO: Apple iPhones are seen inside India's first Apple retail store during a media preview, a day ahead of its launch in Mumbai, India, April 17, 2023. REUTERS/Francis Mascarenhas/File Photo
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Tata Seals Deal with Pegatron for iPhone Plant in India's Tamil Nadu

FILE PHOTO: Apple iPhones are seen inside India's first Apple retail store during a media preview, a day ahead of its launch in Mumbai, India, April 17, 2023. REUTERS/Francis Mascarenhas/File Photo
FILE PHOTO: Apple iPhones are seen inside India's first Apple retail store during a media preview, a day ahead of its launch in Mumbai, India, April 17, 2023. REUTERS/Francis Mascarenhas/File Photo

India's Tata Electronics has agreed to buy a majority stake in Taiwanese contract manufacturer Pegatron's only iPhone plant in India, forming a new joint venture that strengthens Tata's position as an Apple supplier, two sources told Reuters.
Under the deal announced internally last week, Tata will hold 60% and run daily operations under the joint venture, while Pegatron will hold the rest and provide technical support, said the two sources, who declined to be named as the details are not yet public.
The sources did not elaborate on the financials of the deal.
Tata declined to comment, while Apple and Pegatron did not respond to Reuters queries on Sunday.
Reuters was first to report in April that Pegatron had the backing of Apple and was holding advanced talks to sell its only iPhone plant in India to Tata, marking the Taiwanese firm's latest scale back of its Apple partnership.
Apple is increasingly looking to diversify its supply chain beyond China amid geopolitical tensions between Beijing and Washington. For India's Tata, the Chennai Pegatron plant will bolster its iPhone manufacturing plans.
Tata is one of the largest conglomerates in India and has been fast expanding into iPhone manufacturing, rivaling the only other iPhone contract manufacturer operating in India, Foxconn.
The announcement for the deal's closure was made internally at the iPhone plant on Friday, said the first source.
The second source said the two companies plan to file for an approval of the Competition Commission of India (CCI) in the coming days.
Tata already operates an iPhone assembly plant in the southern state of Karnataka, which it took over from Taiwan's Wistron last year. It is also building another in Hosur in Tamil Nadu, where it also has an iPhone component plant which was involved in a fire incident in September.
Analysts estimate India will contribute 20-25% of total iPhone shipments this year, from 12-14% last year.
The Tata-Pegatron plant, which has around 10,000 employees and makes 5 million iPhones annually, will be Tata's third iPhone factory in India.