Nvidia (NVDA) Stock: Company Pauses Revenue-Sharing Deals With AI Cloud Partners
TLDR
- Nvidia has paused its revenue-sharing financing program with AI cloud companies, according to the Wall Street Journal.
- The program, launched less than two months ago, offered credit support to small AI cloud firms in exchange for a cut of their revenue.
- Some Nvidia employees raised concerns the initiative could attract antitrust scrutiny.
- Under the deals, Nvidia would have taken 50% of cloud revenue earned beyond a certain threshold.
- Nvidia says the broader business model is still in place and “continues to evolve.”
Nvidia has put the brakes on a financing initiative that would have given the chipmaker a slice of revenue from AI cloud companies, the Wall Street Journal reported Thursday.
The program was designed to help small AI cloud firms access capital to buy Nvidia’s chips. In return, Nvidia would take a share of the cloud revenue those chips helped generate.
Nvidia stepped back from the deals last week, the Journal said. The company could still revamp the program or fold it into something else down the line.
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