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Nvidia’s AI GPU shortage is no more as delivery times improve drastically

Supply is finally starting to meet demand
Last Updated on April 12, 2024
Nvidia's AI GPU shortage is no more as delivery times improve drastically
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It’s no secret that Nvidia has been reaping the benefits of the AI boom, with its heavy investment into AI proving to be a success as it celebrated record profits. With so much demand for AI chips, shortages were inevitable. A problem with limited supply was evident for a large portion of 2023, carrying over into 2024.

Right now though, Nvidia’s delivery times on these AI chips is now better than ever – as made clear by Dell, one of their primary customers. The future of AI GPU supply is looking bright, and there could be a few reasons for this sizeable improvement.

Dell reports decrease in AI server delivery times

This revelation comes from Dell Taiwan, with their General Manager, Liao Renxiang, claiming that there has been a 50% decline in delivery times for its AI servers. However, this doesn’t directly relate to the consumer gaming GPUs which you may be familiar with, especially with Nvidia putting a lot of focus on their AI chips for servers due to demand.

Reports from Taiwan Economic Daily show that Dell has officially disclosed details that the brand has seen massive demand for its mainstream AI servers, of which they occupying 24.5% of market share. They note that deliver times have gone down from 40 weeks to just 8-12 weeks.

Why is the shortage over?

There are a few reasons why AI GPU shortages could finally be resolved. Officially, Nvidia has been diversifying its supply chain (as Wccftech reports). This means plenty of new partners included in the production side of things, ramping up supplies in order to meet the demand. Semiconductor supplier TSMC has also done the same to help growth.

Others point out that blocks on delivery of AI chips to China has clearly helped delivery times for western companies such as Dell. Regardless, Nvidia is clearly making the most of the AI boom. For gamers though, we can only look forward to their new Blackwell architecture and RTX 50 series, which we have been a little worried about given the focus on AI chips for servers.

At PC Guide, Jack is mostly responsible for reporting on hardware deals. He also specializes in monitors, TVs, and headsets and can be found putting his findings together in a review or best-of guide.