KEY TAKEAWAYS Nvidia shares fell as reports, citing The Information, said that its next-generation artificial intelligence (AI) Blackwell chips have faced problems with accompanying servers that overheat.

Wall Street's attention is on Nvidia ahead of this week's earnings report, but the event could be overshadowed by overheating of Blackwell.

Blackwell GPUs are overheating when connected in custom server racks, according to a report from The Information.

Nvidia’s (NVDA) new Blackwell AI chips have run into issues with overheating servers, creating concerns from customers that they won’t have enough time to open

Speaking to DCD earlier this year, Ian Buck, Nvidia’s accelerated computing VP, said: "The fabric of NVLink, the spine, is connecting all those 72 GPUs to deliver an overall performance of 720 petaflops of training, 1.4 exaflops of inference."

Nvidia first announced Blackwell in March, as the successor to the hugely successful H100 GPUs that are used to power the majority of the world’s AI applications today. They’re said to deliver a 30-times performance boost versus the H100 chips while reducing energy consumption by up to 25% on some workloads.

The chipmaker has asked its suppliers to change the design of the racks several times to resolve overheating problems, according to Nvidia employees who have been working on the issue, as well as customers and suppliers with knowledge of the issue,

Nvidia shares are in the spotlight ahead of the AI darling’s quarterly results later this week and following a report that the company’s next-generation Blackwell chips have encountered issues overheating in servers.