NVIDIA's Blackwell GB200 AI servers are expected to witness a massive shipment volume in Q4 2024, with Microsoft being the most "aggressive" acquirer of the new AI servers.
NVIDIA To Generate Billions Alone From Blackwell AI Servers, Quarterly Demand Expected To Rise By 250%
Team Green's Blackwell architecture is on its way to making history when it comes to the expected revenue NVIDIA will generate from it and the capabilities it will bring to the AI industry. Not only is Blackwell set to dethrone Hopper in terms of market hype, but every mainstream tech company is looking toward acquiring NVIDIA's new AI offerings.
In a new report by the prominent analyst Ming-Chi Kuo, NVIDIA is expected to ship out 150,000-200,000 units of their GB200 AI servers in Q4 alone, with QoQ growth projected to be up to 250%, showing the aggressive industry demand.
Blackwell chip production ramp-up begins in early 4Q24. Considering yield rates and testing efficiency, estimated shipments are about 150,000-200,000 units in 4Q24, with significant growth projected at 200-250% QoQ to 500,000-550,000 units in Q1 2025.
Microsoft's 4Q24 GB200 orders have recently surged 3-4 times from the previous 300-500 racks (mainly NVL36) to about 1,400-1,500 racks (about 70% NVL72). Subsequent Microsoft orders will primarily focus on NVL72.
Other CSP orders, such as Amazon's 300-400 racks of GB200 NVL36 in 4Q24 and Meta's architecture focusing on Ariel rather than Bianca, have significantly lower order volumes than Microsoft. It's important to note that this doesn't necessarily indicate conservatism from other CSPs but that Microsoft's current demand for GB200 is significantly higher than that of other CSPs.
via Medium
NVIDIA can potentially ship 500,000-550,000 units of its Blackwell AI servers by Q1 2025, which means that a million-unit mark can be achieved only in a matter of quarters. In terms of the companies expected to acquire NVIDIA's Blackwell servers, Microsoft is said to be the largest beneficiary, which is said to buy out both the NVL36 and the NVL72 variants of the GB200 AI clusters, with the NVL36 models expected to be delivered this quarter. Microsoft has upscaled its orders by up to 3 to 4 times, mainly including the NVL72 variant in its list.
Foxconn and Quanta are responsible for delivering Microsoft's Blackwell systems, and based on an independent survey from both organizations, Microsoft is the leading CSP when it comes to the orders placed, and the firm is said to be rapidly expanding its AI compute capabilities, especially with the debut of NVIDIA's Blackwell. Companies like Amazon and Meta have significantly lower order volumes, which shows that Microsoft is indeed determined to capitalize on Blackwell's capabilities.
NVIDIA's Blackwell is expected to become mainstream moving into Q4 2024, where we will likely see the architecture in action, delivering computing power to AI companies that will ramp up the technology's development.