Nvidia pauses revenue-sharing deals with AI cloud companies, WSJ reports

Nvidia has temporarily halted some revenue-sharing deals with AI cloud companies, according to a report by the Wall Street Journal. The chip giant introduced this new financing initiative in July, which offered credit support to AI cloud firms in exchange for a portion of their revenues. The program was designed to provide financing for AI cloud companies to purchase Nvidia's expensive chips and earn a share of their cloud revenues if they were unable to sell the chips to other customers.

However, some Nvidia employees raised concerns about the potential antitrust scrutiny this initiative might attract. The company stepped back from the program last week, but maintains its new business model of providing compute access to the fast-growing AI ecosystem, which remains under development due to high demand.