Nvidia Halts Revenue-Sharing Deal with AI Cloud Firms

Nvidia has halted a new financing plan that would have seen the chip giant take a share of revenue from AI cloud providers. The initiative, launched just two months ago, aimed to offer credit support to these providers in exchange for a cut of their earnings.

Sources familiar with the matter told The Wall Street Journal that some Nvidia employees raised concerns about potential antitrust reviews and the sensitivity of the company dictating how clients operate their businesses. Nvidia reportedly withdrew from the plan last week.

The move comes as Nvidia faces increasing scrutiny over its use of its balance sheet to support such initiatives. The company recently scaled back its proposed financial support for OpenAI's data center project in Ohio due to investor concerns about potential debt liabilities.

Nvidia launched a new business model in July to open up computing resources to the AI ecosystem. The revenue-sharing agreement was one of two profit streams, alongside chip sales. Under the plan, Nvidia would receive 50% of revenue generated by cloud service providers above a set base rate, intended to cover costs like GPU depreciation and data center expenses.

“

The company launched a new business model in July to open up computing resources to the fast-growing AI ecosystem, and it continues to develop amid high demand.