Nvidia has paused some deals in a new financing initiative that offered credit support to AI cloud companies in exchange for a share of their revenue, the Wall Street Journal reported on August 27.
Under the proposed deals, Nvidia would receive 50% of any revenue cloud providers earned through its chips beyond a certain threshold. The program was designed to support financing needs at smaller AI cloud firms, helping them deploy Nvidia GPU clusters.
The pause comes less than two months after Nvidia announced the program, raising questions about the chip giant's relationship with the cloud ecosystem. Nvidia did not immediately respond to requests for comment.
The move comes on the heels of Nvidia's record $96.2 billion quarter and a bold long-term revenue projection of $108 billion for the next quarter, in which CEO Jensen Huang declared that AI has reached its inflection point. The company also announced it would start an employee-funded political action committee to influence U.S. policy.
The revenue-sharing model had drawn scrutiny from antitrust observers who worried that Nvidia, already dominant in AI chips, could extend its market power into cloud infrastructure.
