Amazon Web Services (AWS) has decided to pause its orders for Nvidia’s Grace Hopper solutions, which consist of an Nvidia-designed Grace CPU and H100 GPU. Instead, AWS is waiting for the upcoming Grace Blackwell superchips, which include the more powerful Blackwell B200 GPU. This strategic decision reflects AWS’s desire to deploy the latest products and take advantage of the improved AI processing power offered by the new chips, as reported by the Financial Times.
Nvidia unveiled the Blackwell processors in March, touting them as four times more powerful than their predecessors for training AI large language models (LLMs) and enabling the training of larger LLMs. AWS, being a leading cloud computing provider, has shifted its orders from the recently launched Grace Hopper chip to the new Grace Blackwell model due to the short time frame between their releases.
The pricing details for the Grace Blackwell solutions indicate their premium status, with analysts estimating that a GB200 chip could cost up to $70,000. Additionally, an entire NVL72 server rack equipped with the new hardware could cost up to $3 million, signifying a significant investment for companies seeking to leverage the latest AI processors.
While AWS continues to offer other Nvidia chips like the H100 to its cloud customers, Nvidia shares have faced challenges in maintaining their bullish momentum since the announcement of the Blackwell chips in March. The new Blackwell chips are set to enter production soon, with a full launch planned for the fourth quarter. Analysts anticipate a temporary reduction in demand for AI chips during this production surge, raising concerns among investors about a potential drop in demand during the transition between Nvidia’s old and new product cycles.
Despite fears of a pause in demand as companies await the Blackwell chips, analysts remain optimistic, expecting new sovereign, enterprise, and cloud customers to absorb the existing supply of Hopper chips during the transition period. Overall, analysts predict a significant increase in Nvidia’s sales during the first quarter, driven by the growing investment in artificial intelligence infrastructure by major cloud service providers.
In conclusion, AWS’s decision to wait for the Grace Blackwell superchips reflects a strategic move to deploy the latest and more powerful AI processors. While concerns exist about a potential decline in demand during the transition between Nvidia’s old and new product cycles, analysts remain optimistic about the overall outlook for the company.
Article Source
https://www.tomshardware.com/tech-industry/artificial-intelligence/amazon-hits-pause-on-nvidia-grace-hopper-superchip-orders-reportedly-waiting-for-grace-blackwell-to-ship