Despite cooling issue reports, Nvidia says Blackwell AI chips are racing forward

The artificial intelligence chip market continues to evolve rapidly, with Nvidia maintaining its dominance and accelerating development of its next-generation Blackwell processors despite recent concerns.

Market leadership and financial performance: Nvidia has surpassed both Microsoft and Apple to become the world’s most valuable company, driven by unprecedented demand for its AI chips.

• The company’s data center division generated $30.7 billion in revenue this quarter, dwarfing its traditional gaming business which brought in $2-3 billion
• Quarterly profits reached $19.3 billion, approaching the earnings of tech giants Microsoft ($24.7 billion) and Apple ($21.4 billion)

Blackwell development status: Despite recent reports from The Information about potential cooling issues, Nvidia maintains its next-generation AI chip platform is progressing smoothly.

• The company has already distributed 13,000 Blackwell samples to customers
• CFO Colette Kress confirmed the chip is in “full production” with increasing quarterly deliveries planned
• CEO Jensen Huang noted that Blackwell’s success can already be measured in billions of dollars

Product portfolio dynamics: Nvidia is managing a complex transition between multiple generations of AI chips, each finding strong market demand.

• The H200, announced last year, has become Nvidia’s fastest-selling product ever, generating multiple billions in quarterly revenue
• The original H100 chip continues to see strong demand, with availability expected through most of next year
• This overlap between chip generations reflects the massive scale of data center deployments and sustained market appetite

Competitive landscape: The AI chip market is reshaping traditional industry dynamics and forcing strategic shifts among major players.

• AMD is pivoting toward AI-focused development, though its revenue in this sector remains significantly smaller than Nvidia’s
• Both Nvidia and AMD have shortened their development cycles from two years to annual releases to meet market demand
• Intel lags considerably in the AI chip race and is currently undergoing restructuring

Future implications: The sustained demand across multiple chip generations suggests AI infrastructure buildout is still in its early phases, with major cloud providers and enterprises continuing to expand their AI computing capabilities at an accelerated pace.