According to reports, Nvidia’s (NVDA) latest Blackwell architecture GB200 AI chip will experience at least a three-month delay in shipment due to a design flaw.

A Microsoft (MSFT) employee disclosed that Nvidia has informed Microsoft of this news. Google (GOOGL) and Meta have ordered a large number of GB200 chips, with quantities of 400,000 units and $1 billion worth, respectively. This delay has significant implications for these major tech companies.

The GB200 chip includes two interconnected Blackwell GPUs and a Grace central processing unit. When TSMC prepared for mass production, a design flaw was discovered that led to a reduced chip yield. As a result, Nvidia must implement an Engineering Change Order (ECO) and restart trial production.

The Blackwell chips, originally scheduled to begin mass production in the third quarter, are now postponed to the fourth quarter, with bulk shipments delayed until the first quarter of next year. TSMC’s production lines will thus be idle, affecting related suppliers as well. Nvidia’s design changes, classified as ECO after the design was finalized, require additional time and costs. The market generally expects shipments to be delayed until the first quarter of next year.