Nvidia Pushes Back AI Rack System Launch to 2028 Amid Production Hurdles
WHO:
CNBC - Jensen Huang, chief executive officer of Nvidia Corp.
CNBC - Research firm SemiAnalysis.
WHAT:
CNBC - Nvidia has canceled its NVL72x2 architecture due to manufacturing issues.
CNBC - The NVL576 system, which links eight racks via optical connections, is also likely to be delayed or limited to small volumes.
CNBC - Nvidia's next-gen AI rack system, the Kyber NVL144, has been delayed by more than 12 months to 2028.
CNBC - The Kyber rack-scale architecture is designed to house Nvidia's 2027 Rubin Ultra chips.
CNBC - The Kyber system is a server cabinet that packs 144 of Nvidia's most powerful chips into a single unit.
CNBC - Nvidia's current-generation Rubin systems are in full production and begin shipping this fall to eight cloud partners, including Amazon Web Services, Microsoft Azure, and Google Cloud.
CNBC - Nvidia's data-center compute revenue is projected to run 20% above Wall Street consensus in the second half of fiscal 2027.
WHERE:
CNBC - The Nvidia GTC conference took place in San Jose, California, US.
WHEN:
CNBC - The Kyber NVL144 is now set to launch in 2028.
CNBC - The Rubin systems are scheduled to begin shipping in the fall.
WHY:
CNBC - The cancellation of the NVL72x2 architecture was due to heavy pushback from cloud service providers and hyperscalers over its design and operational burden.
CNBC - The delay is due to difficulties manufacturing a key circuit board at the heart of the system.
CNBC - A backup plan to combine two of Nvidia's current-generation racks was scrapped due to heavy pushback from cloud service providers and hyperscalers.
HOW:
CNBC - SemiAnalysis stated that Nvidia has "no proven solution to expand the scale-up world size for Rubin Ultra," which may provide an opportunity for competitors like Advanced Micro Devices and Google.
CNBC - The design of the Kyber system mounts graphics processing units in compute trays that sit vertically to boost density and reduce latency.
CNBC - The PCB midplane is a specialized, multi-layer printed circuit board that connects electronic modules within the system.
(UPDATED July 6, 2026 10:19 UTC)
Nvidia has announced the cancellation of its NVL72x2 architecture due to significant pushback from cloud service providers and hyperscalers regarding its design and operational challenges. Additionally, the NVL576 system, which connects eight racks through optical links, is expected to face delays or be limited to smaller production volumes. SemiAnalysis noted that Nvidia currently lacks a proven solution to expand the scale-up capabilities for Rubin Ultra, potentially opening the door for competitors like Advanced Micro Devices and Google.
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(UPDATED July 6, 2026 08:26 UTC)
Nvidia's next-generation AI rack system, the Kyber NVL144, has been delayed by more than 12 months and is now set to launch in 2028, primarily due to challenges in manufacturing a crucial circuit board. The Kyber system is designed to house Nvidia's 2027 Rubin Ultra chips, while the current-generation Rubin systems are in full production and scheduled to begin shipping this fall to major cloud partners like Amazon Web Services and Microsoft Azure. Despite the delay, Nvidia's data-center compute revenue is projected to exceed Wall Street expectations by 20% in the second half of fiscal 2027.