videopokermultihandfree| Amazon suspends subscriptions to Nvidia Hopper chips investors worry about disruption in demand

Sina Technology News Beijing time on the evening of May 21, it is reported that Amazon's cloud computing division AWS has suspended orders for Nvidia's most advanced "super chip" Grace Hopper, waiting for a more powerful new product Grace Blackwell (GH200). The move comes amid fears that Nvidia will experience a decline in demand between the two product cycles.

In March this year, Nvidia releasedVideopokermultihandfreeA new generation of processors called Blackwell, less than a year after its predecessor, Hopper, began shipping to customers. Nvidia CEO Huang Renxun says the new product will double its ability to train large language models.

Grace Hopper was officially launched in August this year. AWS also confirmed to the mediaVideopokermultihandfreeThe news said that the time interval between the two products was very short, and it was reasonable to wait for the new product.

Nvidia declined to comment ahead of Wednesday's quarterly results, citing a silence period. Nvidia's shares fell about 1 per cent in early trading on Tuesday.

Analysts expect Nvidia's sales to triple in the quarter, driven by big technology companies investing heavily in AI technology. But some investors have begun to question how long this extraordinary growth momentum can last.

In a note to clients this week, Morgan Stanley analysts said that while large technology companies had pledged to continue to invest tens of billions of dollars in data center infrastructure for AI this year, Wall Street was anxious about Nvidia's pause ahead of the launch of Blackwell.

The production of new Blackwell chips will gradually increase this year. Analysts expect them to be delivered in the fourth quarter. Citigroup analysts believe that during this period, Nvidia AI chip demand will be a gap.

Neither Amazon nor Nvidia would disclose the value of the order. Analysts at HSBC estimate that a GB200 chip will cost as much as $70, 000, while an entire server equipped with the new technology can cost as much as $3 million.

AWS will continue to provide other Nvidia chips, including the H100, to its cloud customers. But AWS, one of Nvidia's biggest customers, is likely to worry investors who had worried that technology companies would delay purchases while waiting for Blackwell to go public.

For most of last year, the introduction of OpenAI's groundbreaking ChatGPT triggered a wave of investment in AI infrastructure by cloud and Internet companies, start-ups and corporate buyers, leaving Nvidia's H100 AI chips in far short supply. But the long wait for the H100 chip has eased since early 2024.

Nvidia's shares have almost doubled since the start of the year because of investor confidence in demand for AI chips. But Nvidia shares have struggled to show a sustained rise since the launch of the Blackwell in March.

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