Nvidia CEO Jen-Hsun Huang cuts through the 'fake-news', saying that Blackwell's design fault was '100% Nvidia’s fault'. There are no tensions between TSMC and Nvidia.

Nvidia Blackwell chips have finally shipped to customers after delays. However, the roll-out process hasn't gone smoothly, as recent reports suggest that Nvidia and TSMC are experiencing tensions over some Blackwell failures. Nvidia CEO Jen-Hsun Huang clarified that tensions between TSMC and Nvidia are not present, and the problem is "100% Nvidia’s fault".

Reuters reported that Huang admitted a Blackwell design fault but blamed Nvidia solely. He claims that "a design defect with its latest Blackwell AI chip which impacted production was fixed with the assistance of long-time Taiwanese manufacturer TSMC."

According to Huang Blackwell was "functional but the design flaw resulted in a low yield." It was Nvidia's 100% fault." In fact, "TSMC did not hinder Blackwell's rollout. What they did was help us recover from this yield problem and resume manufacturing Blackwell at an unbelievable pace."

Huang called reports of tensions between AI and chip giants "fake" news. We were right to be skeptical about the claim that Nvidia was looking at Samsung for its chip manufacturing. The initial reports were wrong, despite the fact that the sources may have been different. It's all good in Team Green land, except for the somewhat delayed Blackwell release.

Reuters reports that Nvidia shares "fell about 2% in the early trading", possibly hinting that it was related to "fake-news". Nvidia is on the rise and a 2% decline in early trading won't matter much. The company is still the hot thing in the burgeoning AI industry, and if Huang is right, the non-fatal Blackwell bug has been fixed.

This is especially advantageous, given that Blackwell chips are already shipping and have been lining some racks. There's been some delay, but it appears that Blackwell, which Nvidia believes could be its "most successful product in history," is ready to handle the next wave cloud and AI server workloads.

As PC gamers, we are also excited to see what Blackwell brings in the form RTX 50 series graphics cards such as the RTX 5090. We expect these graphics cards to be among the best for gaming when they launch in early 2025. This, combined with the general signs of a booming GPU industry, could give us a lot to look forward to.