(Bloomberg) -- Hon Hai Precision Industry Co. will only start shipping a small volume of servers containing Nvidia Corp.’s next-generation chips in the fourth quarter, signaling the challenges the US AI accelerator designer faces in speeding up its innovation.
Hon Hai’s shipments of servers containing GB200, or a Grace processor bundled with an upcoming Blackwell graphic processing unit, will grow significantly only in the first quarter of 2025, company spokesman James Wu told analysts in a conference call on Wednesday. The Taiwanese manufacturer will be one of the first server makers to ship gear containing GB200 chips, Wu added.
The company has a close working relationship with Nvidia and is looking to take a 40% share of the market for supplying data center operators with the AI servers they need to train models.
Nvidia has hit engineering snags in the development of its next-generation Blackwell lineup, slowing the release of some products designed to extend its lead in the market for artificial intelligence computing, Bloomberg News has reported.
In May, Nvidia Chief Executive Officer Jensen Huang said that Blackwell had reached full production and the company will see a lot of sales from the new portfolio this year.
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