Nvidia Delays Next-Gen AI Rack to 2028 Amid Manufacturing Hurdles
Nvidia’s next-generation AI rack architecture, Kyber, has been delayed until 2028, according to a report by SemiAnalysis. The Kyber rack was designed to house 144 of Nvidia’s upcoming Rubin Ultra chips, but manufacturing challenges with a key circuit board, the PCB midplane, have pushed back its release. Additionally, Nvidia’s alternative NVL72x2 back-to-back rack architecture has been canceled, leaving Rubin Ultra with limited scaling options.
Despite the setback, Nvidia’s current-generation Rubin chip systems are in full production and will begin shipping this fall. Early customers include major cloud providers like Amazon Web Services, Microsoft Azure, and Google Cloud. The company also recently launched a revenue-sharing program aimed at AI startups and enterprises, allowing them access to Nvidia’s computing infrastructure in exchange for a share of future revenue.
Nvidia’s stock (NVDA) saw a volatile premarket session on Monday, eventually rising 0.2%. However, sentiment on Stocktwits remains bearish, with traders frustrated by the stock’s underperformance. NVDA is up just 4.6% year to date, marking its worst six-month performance since late 2022.
Other recent developments include the signing of two firms, Sharon AI from Australia and Firmus Technologies from Indonesia, to Nvidia’s revenue-sharing program. Retail traders continue to monitor the stock closely, with message volume rising 9% over the past week.