Super Micro and Nvidia: A Powerful Partnership for AI and HPC

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nvidia blackwell server contract with Super Micro Computer

The situation between Nvidia and Super Micro Computer (SMCI) regarding Blackwell server contracts is currently complex and challenging:

Current Status

Super Micro Computer is facing significant challenges with its Nvidia Blackwell GPU supply and business relationship. Nvidia has reportedly begun redirecting orders away from SMCI to more stable suppliers, impacting their partnership.

Technical Readiness

Despite the challenges, Super Micro claims to be technically prepared for Blackwell deployment:

  • Their GB200 NVL72 system is ready
  • Both air-cooled 10U B200 and liquid-cooled 4U systems are production-ready

Underlying Issues

Several factors are affecting the relationship:

Legal and Financial Concerns

  • DOJ investigation into financial practices
  • Ernst & Young’s resignation as auditor
  • Risk of Nasdaq delisting
  • Allegations of financial misconduct

Supply Chain Impact

  • Limited availability of Blackwell chips
  • CEO Charles Liang has acknowledged persistent requests to Nvidia for new Blackwell chip supplies
  • Production volume is expected to potentially improve in Q1

Market Impact

The situation has created opportunities for competitors:

  • Dell has emerged as a beneficiary, reporting $3.1 billion in AI server sales
  • Dell’s Infrastructure Solutions Group has seen an 80% increase in server sales
  • Major tech companies like Alphabet, Amazon, and Microsoft are scheduled to receive initial Blackwell deliveries in 2025

The future of Super Micro’s Blackwell server contracts remains uncertain as Nvidia appears to be prioritizing more stable partners for its chip supply chain.

Who are the main supplier for Nvidia’s Blackwell server, list in table format and their percentage

here is a breakdown of the main suppliers for Nvidia’s server business, presented in a table format:

Supplier Market Share (%)
Hon Hai Technology Group (Foxconn) 24
Inventec 22
Quanta Computer 15
Wistron 5
Gigabyte 2
Wiwynn 1

Key Points

Supply Chain Roles

  • Foxconn leads with vertical integration capabilities, handling GPU modules, substrates, motherboards, and chassis
  • Quanta Computer is recognized for having the most advanced technology and designed the first AI server with Nvidia
  • Inventec is Microsoft’s largest AI server motherboard supplier
  • Wistron is the exclusive manufacturer for Nvidia’s DGX servers

Market Position

  • Taiwanese vendors account for over 70% of Nvidia’s global GPU server shipments
  • These suppliers have competitive advantages through:
    • Economies of scale
    • Flexible global production networks
    • Production capabilities in Taiwan, Southeast Asia, and Mexico

The upcoming Blackwell platform launch in Q4 2024 is expected to drive significant changes in the server market, particularly in cooling solutions, with liquid cooling penetration projected to grow from 10% in 2024 to over 20% in 2025.

What are the primary components supplied by each of Nvidia’s main suppliers

here’s a breakdown of the primary components supplied by Nvidia’s main suppliers:

Major System Integrators

Supplier Primary Components/Responsibilities
Foxconn - GPU modules
- GPU substrates
- Motherboards
- Chassis
- NVLink switches (exclusive supplier)
Quanta - Advanced AI server designs
- First AI server designer (DGX-1)
- Cloud service provider systems
Inventec - Motherboards (largest supplier for Microsoft)
- Rack integration (via ZT partnership)
Wistron - DGX server manufacturing (exclusive)
- GPU substrates

Cooling Solution Suppliers

Component Suppliers
Cold Plates - Asia Vital Components
- Cooler Master
Manifolds - Cooler Master
- Auras
Coolant Distribution Units - Vertiv
- Delta Electronics
Quick Disconnect Components - CPC
- Parker Hannifin
- Denfoss
- Staubli

Market Impact

  • Liquid cooling penetration is expected to grow from 10% in 2024 to over 20% in 2025
  • The GB200 NVL72 racks require liquid cooling solutions due to their high TDP of approximately 140 kW
  • Other Blackwell architectures (HGX and MGX) will continue using air cooling solutions due to lower density

What is super micro computer strategy partnership with Nvidia in AI server and specially in Blackwell

here’s an analysis of Supermicro’s partnership strategy with Nvidia for AI servers and Blackwell:

Product Portfolio

Blackwell-Ready Systems

  • NVIDIA HGX B100/B200 8-GPU systems
  • 4U liquid-cooled NVIDIA HGX B200 8-GPU system
  • GB200 NVL72 rack solution with 72 NVIDIA Blackwell GPUs
  • 10U air-cooled B200 system
  • Various MGX systems supporting up to 4 B100 GPUs

Technical Innovations

Cooling Solutions

  • Direct-to-chip liquid cooling technology for high TDP GPUs
  • Rack-scale liquid cooling solutions reducing power usage by up to 40%
  • SuperCloud Composer (SCC) for end-to-end management from chip to cooling towers

Performance Capabilities

  • Systems deliver 3X faster training for LLMs compared to Hopper architecture
  • 1.8TB/s high-speed fifth-generation NVLink interconnect
  • 30x speed-ups for AI inference compared to HGX H100

Manufacturing Capacity

  • Production capacity of 5,000 racks per month
  • First-to-market strategy for Blackwell deployment
  • Global manufacturing with world-class efficiency

Current Challenges

Despite technical readiness, Supermicro faces several obstacles:

  • Delayed financial reporting and auditor resignation
  • DOJ investigation concerns
  • Uncertainty about Blackwell chip availability
  • CEO Charles Liang actively seeking increased chip allocation from Nvidia

Future Outlook

  • Focus on rack-scale total liquid cooling solutions
  • Emphasis on building block architecture and rack-scale Total IT for AI
  • Ready for production but waiting for Nvidia’s chip availability
  • Expecting volume improvements in Q1 2025

How does Supermicro’s liquid cooling technology enhance the performance of NVIDIA Blackwell GPUs

here’s a detailed analysis of how Supermicro’s liquid cooling technology enhances NVIDIA Blackwell GPU performance:

Technical Capabilities

Cooling Performance

  • Handles extreme heat levels up to 12kW per server
  • Manages AI racks generating over 100kW of heat
  • Supports warm water cooling up to 113°F (45°C)
  • Can dissipate up to 1600W for next-generation NVIDIA GPUs

System Density

  • Enables up to 96 NVIDIA Blackwell GPUs per rack
  • Achieves 4x computing density compared to traditional setups
  • Supports up to 72 NVIDIA Blackwell GPUs in GB200 NVL72 configuration

Efficiency Improvements

Power and Space Optimization

  • Reduces power consumption by up to 40%
  • Achieves 80% space savings by eliminating traditional CRAC/CRAH units
  • Delivers PUE of less than 1.1

Performance Benefits

  • Allows GPUs to operate at peak performance for longer periods
  • Enables full utilization of 20 PetaFLOPS on a single GPU
  • Reduces training time for large language models

Infrastructure Components

Complete Cooling Solution

  • Advanced cold plates with microchannels
  • Coolant Distribution Units (CDUs) with 250kW cooling capacity
  • Horizontal and vertical Coolant Distribution Manifolds (CDMs)
  • Modular cooling towers with EC fan technology
  • SuperCloud Composer management software for real-time monitoring

This comprehensive liquid cooling solution has proven successful, with Supermicro deploying over 2000 liquid-cooled racks since June 2024, demonstrating its effectiveness in real-world AI infrastructure projects.

Nvidia’s reason new about the Blackwell server overheating and ask their vender to change design, give me a siummarly

Based on the recent news reports (November 17-18, 2024), here’s a summary of the Nvidia Blackwell server overheating situation:

Core Issues

Overheating Problems

  • Blackwell GPUs are experiencing significant heat management issues when installed in 72-chip server racks
  • The racks, designed to consume up to 120kW of power, are showing thermal management challenges

Design Modifications

  • Nvidia has asked suppliers to make multiple design changes to the server racks
  • The modifications are occurring late in the production process
  • The company is working with cloud service providers to resolve the issues

Impact

Customer Concerns

  • Major clients including Google, Meta, and Microsoft are worried about deployment timelines
  • Some customers fear they won’t have enough time to get new data centers operational

Nvidia’s Response

  • Company spokesperson states these “engineering iterations are normal and expected”
  • Describes the GB200 systems as “the most advanced computers ever created”
  • Continues to work with leading cloud service providers as part of the engineering process

Timeline

  • Mass production began in late October 2024
  • Initial deliveries were expected to start in December 2024
  • SoftBank was announced as the first customer to receive the Blackwell chips

The situation has affected Nvidia’s stock price, with shares falling as much as 1.8% following the news.

What are the potential impacts of these overheating issues on Nvidia’s stock performance

here’s an analysis of the overheating issues’ impact on Nvidia’s stock performance:

Immediate Market Response

Stock Price Impact

  • Shares fell up to 3% in premarket trading to $137.92
  • Stock declined as much as 1.8% following the news
  • Market capitalization stands at $3.48 trillion, still maintaining its position as the world’s most valuable company

Financial Implications

Earnings Expectations

  • Q3 earnings expected to show 81% YoY revenue growth to $32.8 billion
  • Several billion dollars worth of Blackwell revenue projected for January quarter
  • Stock has risen 186.7% year-to-date despite current challenges

Market Concerns

Key Risk Factors

  • Potential delays in deployment to major customers like Meta, Microsoft, and Google
  • Production timeline shifts affecting Q4 2024 revenue projections
  • Increased engineering costs due to multiple rack redesigns

Analyst Perspective

Market Outlook

  • Historical data suggests potential one-day move of up to 8.78% around earnings
  • Average EPS surprise of 14.41% in previous quarters
  • Analysts maintain strong buy recommendations despite technical challenges

Long-term Considerations

Strategic Position

  • Expected market share of 66% by 2026
  • Continued strong demand for AI infrastructure
  • “Insane” demand for Blackwell reported by CEO Jensen Huang
  • Blackwell chips reportedly sold out for next 12 months

The market’s ultimate response will largely depend on how quickly Nvidia can resolve these technical challenges and maintain its projected delivery schedule to key customers.

Nvidia asked which suppliers to make multiple design changes to the server racks, and who are those companies related to this issue

here’s an analysis of the suppliers involved in the Blackwell server rack redesign:

Primary Suppliers Affected

Server Rack Manufacturers

  • Foxconn (Hon Hai Technology Group)
  • Inventec
  • Quanta Computer
  • Wistron (exclusive manufacturer for Nvidia’s DGX servers)

Cooling Solution Providers

  • Asia Vital Components
  • Cooler Master
  • Vertiv
  • Delta Electronics

Design Change Requirements

Technical Issues

  • Overheating occurs in racks designed to hold 72 processors
  • Systems consuming up to 120kW per rack
  • Problems with thermal expansion characteristics affecting:
    • GPU chiplets
    • LSI bridges
    • RDL interposer
    • Motherboard substrate

Impact on Production

Timeline Effects

  • Mass production began in late October 2024
  • Changes requested late in the production process
  • Delivery delays expected for major customers
  • Initial shipments pushed to late January 2025

The search results don’t explicitly state which specific suppliers were asked to make the design changes, but indicate that Nvidia is working closely with all its major suppliers and cloud service providers to resolve the overheating issues.

What are the main challenges Nvidia is facing with the Blackwell GPU design

here are the main challenges Nvidia is facing with the Blackwell GPU design:

Thermal Management Issues

Server Rack Problems

  • Severe overheating in 72-processor configurations (NVL72 GB200 racks)
  • Power consumption reaching up to 120kW per rack
  • Performance limitations due to thermal constraints
  • Risk of component damage from excessive heat

Technical Design Flaws

Packaging Technology Issues

  • Problems with TSMC’s CoWoS-L packaging technology
  • Thermal expansion mismatches between components:
    • GPU chiplets
    • LSI bridges
    • RDL interposer
    • Motherboard substrate
  • Warping and system failures due to component interactions

Production Challenges

Manufacturing Setbacks

  • Initial yield-killing design flaw requiring modifications
  • Changes to GPU silicon’s top metal layers
  • Modifications to bump structures
  • New photomask requirements
  • Mass production delayed until late October 2024

Impact on Deployment

Customer Concerns

  • Delays affecting major clients (Google, Meta, Microsoft)
  • Uncertainty about data center deployment timelines
  • Multiple rack design revisions requested from suppliers
  • Expected shipping dates pushed to late January 2025

Despite these challenges, Nvidia maintains that these engineering iterations are normal and expected for such advanced computing systems, working closely with cloud service providers to resolve the issues.

What is Super Micro Computers relation with Nvidia in Blackwell servers

here’s a comprehensive analysis of Super Micro Computer’s relationship with Nvidia regarding Blackwell servers:

Strategic Partnership

Product Portfolio

  • Multiple Blackwell-based systems in development:
    • NVIDIA GB200 NVL72 platform (72 Blackwell GPUs per rack)
    • 4U liquid-cooled NVIDIA HGX B200 8-GPU system
    • 10U air-cooled B200 systems
    • NVIDIA MGX systems with GB200

Manufacturing Capacity

  • Global production capacity of 5,000 racks per month
  • Over 2000 liquid-cooled racks shipped since June 2024
  • First-to-market strategy for Blackwell deployment

Technical Innovations

Cooling Solutions

  • End-to-end liquid cooling technology
  • Advanced in-rack or in-row coolant distribution units (CDUs)
  • Custom cold plates for compute trays
  • SuperCloud Composer (SCC) for management from chip to cooling towers

Performance Capabilities

  • 1.8TB/s fifth-generation NVLink interconnect
  • 3X faster training for LLMs compared to Hopper architecture
  • 30x speed-ups for AI inference compared to HGX H100

Current Challenges

Supply Chain Issues

  • Actively seeking increased chip allocation from Nvidia
  • CEO Charles Liang requesting daily updates on Blackwell availability
  • Production volume expected to improve in Q1 2025

Future Outlook

Ready for Scale

  • Systems are production-ready awaiting chip availability
  • Enhanced rack-scale solutions developed
  • Focus on building block architecture and rack-scale Total IT for AI

What’s the percentage of Supermicro in Nvidia’s AI server compare to other competitor, list everything in table format

here’s a breakdown of market share in Nvidia’s AI server market:

Company Current Market Share (%) Expected Share by 2026-2027 (%)
Super Micro Computer 10 17
Dell Technologies 35 Not Specified
HPE 25 Not Specified
Other OEMs 30 Not Specified

Key Market Dynamics

Growth Indicators

  • Supermicro’s revenue grew 110% in fiscal 2024
  • AI-related sales account for 70% of Supermicro’s revenue
  • Production capacity of 5,000 racks per month

Competitive Advantages

  • Specialized in liquid-cooled servers
  • Direct-to-chip liquid cooling technology
  • First-to-market strategy for Blackwell deployment
  • Bank of America expects Supermicro’s market share to grow to 17% over next three years

Market Position

  • Currently controls about 10% of dedicated AI server market
  • Faces strong competition from Dell and HPE
  • Strategic partnership with Nvidia for GPU supply
  • Production ready for GB200 NVL72 and B200 systems

The market share percentages indicate that while Supermicro is currently a smaller player, it’s positioned for significant growth in the AI server market.

Whats Supermicro’s strength in Nvidia’s AI server compare to other competitors

here are Supermicro’s key strengths in the AI server market compared to competitors:

Technical Advantages

Cooling Innovation

  • Leader in liquid-cooled server technology
  • Advanced liquid cooling reduces power consumption by up to 40%
  • Specialized solutions for high-performance AI systems
  • Ability to handle extreme heat levels up to 12kW per server

Product Differentiation

  • High-performance liquid-cooled servers as a niche market
  • Preferred partner status with Nvidia for GPU integration
  • Early access to next-generation GPU technologies
  • Flexible and customized approach to meet customer needs

Market Position

Growth Metrics

  • Revenue grew 110% in fiscal 2024
  • AI servers account for over 50% of total revenue
  • Current 10% market share expected to reach 17% in next three years
  • Fourth-largest server provider globally, ahead of Lenovo

Strategic Partnerships

  • Strong collaboration with all major chip suppliers:
    • Nvidia (primary partner)
    • AMD
    • Intel

Customer Base

Key Clients

  • Meta
  • Amazon
  • Major cloud service providers
  • Enterprise data centers

Competitive Edge

Business Model Strengths

  • Faster time-to-market for new products
  • More flexible and customizable solutions
  • Energy-efficient designs
  • Lower pricing compared to larger competitors
  • Superior growth rates compared to Dell and HPE

This combination of technical innovation, strategic partnerships, and market positioning has helped Supermicro establish a strong presence in the AI server market despite competition from larger players.

Whats Supermicro’s liquid-cooled server technology’s edge

here’s a comprehensive analysis of Supermicro’s liquid-cooled server technology advantages:

Technical Superiority

Cooling Performance

  • Handles extreme heat levels up to 12kW per server
  • Supports AI racks generating over 100kW of heat
  • Achieves up to 40% energy savings for infrastructure
  • Delivers PUE of less than 1.1

Infrastructure Innovation

  • Complete end-to-end liquid cooling solution
  • Advanced cold plates with microchannels
  • State-of-the-art rack-CDU solutions with 250kW cooling capacity
  • Supports warm water cooling up to 113°F (45°C)

Market Leadership

Deployment Scale

  • Shipped over 2000 liquid-cooled racks since June 2024
  • Currently shipping over 100,000 GPUs per quarter
  • Production capacity of 5,000 racks per month

System Density

  • Supports up to 96 NVIDIA B200 GPUs per rack
  • Achieves 4x computing density compared to traditional setups
  • 80% space savings by eliminating traditional CRAC/CRAH units

Management Capabilities

Software Integration

  • SuperCloud Composer for end-to-end management
  • Real-time monitoring of all components
  • Integrated lifecycle management
  • Optimization of operational costs

Competitive Advantages

Market Position

  • Only Lenovo’s Neptune solution is comparable
  • Superior deployment speed (weeks vs. months)
  • More targeted cooling solution for big AI workloads
  • Leading position in high-performance data center infrastructure

This comprehensive solution positions Supermicro as a leader in the rapidly growing liquid-cooled server market, particularly for AI and high-performance computing applications.

How does Supermicro ensure the reliability and efficiency of its liquid cooling systems

here’s a detailed analysis of how Supermicro ensures reliability and efficiency in its liquid cooling systems:

Testing and Validation

Multi-Level Testing

  • Fully validated and tested at three levels:
    • System level (L10)
    • Rack level (L11)
    • Cluster level (L12)
  • Enterprise-grade components with redundant systems

Safety Features

  • Leak-proof connectors
  • Advanced leak detection systems
  • Single-handed, 0-drip quick disconnectors
  • Redundant cooling pumps and power supplies

Technical Specifications

Cooling Capacity

  • Handles up to 12kW per server
  • Supports racks generating over 100kW of heat
  • CDUs with 250kW cooling capacity
  • Warm water cooling support up to 113°F (45°C)

Component Design

  • Optimized cold plates with microchannels
  • Advanced thermal resistance reduction
  • Hot-spot elimination technology
  • Flexible hoses with secure connections

Management Systems

SuperCloud Composer Software

  • Real-time monitoring of all components
  • End-to-end management capabilities
  • Temperature tracking from CPU/GPU to cooling towers
  • Detailed logging metrics for performance health
  • Preventative maintenance tracking

Proven Performance

Deployment Track Record

  • Over 2,000 liquid-cooled racks delivered since June 2024
  • Currently shipping over 100,000 GPUs per quarter
  • Successfully cooling some of the largest AI facilities
  • Deployment time reduced from months to weeks
  • Up to 40% power reduction in real-world implementations