NVIDIA is facing significant order reductions from major cloud service providers (CSPs) like Microsoft, Amazon, Google, and Meta, reportedly due to overheating and chip connection glitches in its latest Blackwell GB200 racks.

Some customers, including Microsoft, are delaying installations or opting for older NVIDIA Hopper chips until updated Blackwell racks are available. Microsoft initially planned to install racks with 50,000 chips in its Phoenix facility but scaled back after delays impacted critical partners like OpenAI.

Despite the setbacks, NVIDIA remains confident in its ability to sell revised Blackwell racks once issues are resolved. CEO Jensen Huang previously projected billions in revenue from Blackwell chips in Q4, exceeding earlier estimates.

Additionally, potential U.S. government restrictions on AI chip exports loom, further complicating NVIDIA's sales outlook.