Microsoft has cut GB200 AI server orders 40%

[erek]

“Rumor: Microsoft has cut GB200 AI server orders 40% due to a problem with the backplane interconnect design that could delay mass production until March, 2025, media report, citing unnamed supply chain sources, and adding the problem is with a cartridge connector module made by a US company.”

Source: https://x.com/dnystedt/status/1863407215396491576

 

[Lakados]

Before anybody gets too excited, Microsoft cut 40% of the GB200 orders yes.
But they also rolled forward orders on the GB300 series as well which launch in the middle of next year.

So based on availability this just gets them up and running with the GB 200's faster and the difference is more than offset by the GB300's.

The backplane issue is being greatly overplayed as an issue, it requires hyperscalers to implement better cooling, and shielding around the NVLink cables. It works out to something like an extra $1000 per 1U in each rack you are implementing the GB200's into, and given their cost the added backplane work is pretty marginal. It raises the price from $3M to $3.04M per rack... scary.