Nvidia shares plunged in early premarket trading in New York. The world's most valuable chip maker is being battered by a global selloff, rising recession fears, AI bubble unwind (mid-July report: "Did The AI Bubble Just Burst, And What Happens Next") , and reports of delays in its new AI chip production. 

The Information reports that Nvidia has informed Microsoft and other cloud providers that its most advanced AI chip models in the Blackwell series (B200 AI chip) face three months of delays following the discovery of a design flaw "unusually late in the production process."

Google, Meta, and Microsoft are betting billions of dollars on Nvidia's new chips to maintain top leadership in the AI arms race. All three companies have ordered "tens of billions of dollars" of advanced AI chips that might not be produced until later this year and might not be ready for mass shipment until the first quarter of 2025.