Nvidia Postpones Kyber NVL144 for More Than One Year Until 2028

Nvidia delayed its upcoming server platform Kyber NVL144 by over a year, until 2028. The company also canceled several other products due to issues with the PCB midplane. Shares of Asian companies fell 10%–18%. Analytical agency SemiAnalysis published information about it. According to her, the problem lies with the PCB midplane (central panel), which connects all the components in the server cabinet. The board turned out to be extremely problematic to manufacture without flaws, and the company could not solve the problem in time.

In addition, the company canceled a number of products. So, the Rubin Ultra configuration, based on the most powerful implementation of the architecture with four computing dies, was canceled. Instead, a product with two such dies and twice less performance will be released. Also canceled is the NVL72x2 project, which united two Oberon racks. It did not please the cloud service providers, so it was decided to abandon it. And the main scalability mechanism, CPO-NVSwitch, was moved to the following generation of products — Feynman.

1The Market Reacted Immediately

As a result, the shares of Asian companies fell. These are companies that supply parts for Nvidia servers. In particular, Ibiden’s shares fell by 10% (Japan), Kingboard Laminates fell by 18% (Hong Kong), Elite Material by 10% (Taiwan) and Samsung Electro-Mechanics by 11% (South Korea). All of them make boards and substrates that are directly related to the Nvidia schedule, so they will receive orders for products a year later.

2Who Benefits

Delaying the release of the Kyber NVL144 platform allows competitors to breathe a sigh of relief. First, AMD is launching its MI500X processors, and secondly, Google is introducing the TPUv8i Broadfly chip. Now these products will be able to take root in the market without direct competition from their Nvidia counterparts, especially since many cloud service providers are not very satisfied with the company’s configurations. This is a significant event for the AI infrastructure market, where for a long time there has been only one player who was able to dominate. Customers can finally choose something more attractive for themselves.

Kyber is not just another product. It is the future of computing power that all major AI centers are waiting for to train their models. And if the release is delayed by a year, then the market will have to do without the usual exponential growth in capabilities, not because of a shortage of money or interest, but simply because of the technological limitations of production.