NVIDIA AI Servers Experience Soaring Demand as Blackwell Ultra GB300 Production Faces Challenges from Supplier Quanta

NVIDIA’s Blackwell Ultra GB300 AI servers are experiencing a surge in demand that has been described as ‘unprecedented’ by Quanta, the primary supplier responsible for their production. The high market interest has outstripped the current manufacturing capacity, leading to significant challenges in fulfilling orders.

NVIDIA’s AI Server Shipments Expected to Peak by Q4 Amid Sustained Demand

Recently, NVIDIA announced plans to increase production of its GB300 AI clusters, but industry analysts are noting that the demand far exceeds expectations. As reported by Quanta’s Executive Vice President in an interview, the appetite for AI servers is described as ‘unimaginable.’ The NVIDIA GB200 and GB300 models are emerging as the leading choices among consumers. Quanta has identified a significant production bottleneck; the surge in AI interest has created a situation where demand surpasses supply, a trend likely to persist in the coming years.

Quanta, along with Foxconn, stands as one of NVIDIA’s crucial suppliers for these AI servers. The company is taking strategic steps to diversify its manufacturing to the United States and other regions, including Thailand and Mexico. Notably, their facility in Mexico is set to begin production by next year, with additional investments being planned in California and Tennessee. Quanta forecasts that server shipments will reach their peak by Q4, with a significant proportion attributed to Blackwell Ultra GB300 clusters.

NVIDIA hardware featuring advanced graphics processing unit and server for AI computing solutions. — Image Credits: NVIDIA

The Blackwell Ultra series from NVIDIA has faced minor challenges, particularly related to the redesign from the initial Bianca to the updated Cordelia architecture, which features a modular design with SOCAMM memory. However, adjusting the supply chain to accommodate these substantial changes proved difficult, prompting NVIDIA to revert to an older board design akin to the GB200. This strategic shift has enabled a smoother ramp-up in production, aligning suppliers to meet the high demand effectively.

As per industry sources, NVIDIA’s AI servers are expected to maintain strong demand through the end of the year. In addition, the anticipated launch of the Vera Rubin project will add further momentum to NVIDIA’s position in the AI sphere.

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