NVIDIA Faces Challenges with New Blackwell Ultra “GB300” Servers as Clients Hesitate to Purchase

Despite NVIDIA’s efforts with the Blackwell lineup, the company is facing significant challenges in the sales of its new GB300 servers, primarily due to shifting customer preferences towards more established solutions.

NVIDIA’s Sales Projections Reveal Challenges for GB300 AI Servers

During the GTC 2025 event, NVIDIA introduced its Blackwell Ultra hardware. While the initial industry reception was positive, the supply chain dynamics tell a different story. A recent report from Ctee highlights that leading cloud service providers (CSPs) like Microsoft are reportedly abandoning their GB300 orders. This shift is largely attributed to dissatisfaction with the previous generation and a growing preference for NVIDIA’s more reliable offerings, such as its HGX systems.

The report indicates that the GB200 did not launch successfully, primarily due to considerable yield rate issues stemming from TSMC’s advanced packaging techniques. Although these problems have been addressed, CSPs are expressing frustration over the extended setup times required for GB200 server racks. Consequently, when technical difficulties arise within clusters, CSPs find themselves dependent on NVIDIA for troubleshooting, complicating their operations.

Given Blackwell’s faltering reputation, CSPs are hesitant to embrace the newer GB300 lineup. Reports suggest that mass production may be deferred until next year, reflecting a supply chain fatigue that was anticipated in previous analyses. Current projections estimate NVIDIA’s annual shipments for GB200 at a mere 15, 000 units, a stark contrast to the robust sales of the Hopper generation, indicating a significant decline in market interest over successive generations.

In light of this, companies are showing an increased preference for NVIDIA’s well-established solutions like the HGX 100 servers, which are recognized as leaders in the Hopper generation. This trend suggests that while demand for powerful computing solutions remains strong, NVIDIA must reassess its supply chain strategy. Currently, the company’s focus on pushing products without adequately addressing customer concerns is creating an opportunity for competitors to gain traction in the market.

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