Nvidia Is Rethinking Its Revenue-Sharing Deals with Cloud Firms

Nvidia is reconsidering the structure of an initiative it announced earlier this summer, the AI Compute Partnership, to provide credit support to AI cloud providers that rent out Nvidia chips, in exchange for a cut of those rental revenues, The Information reported Monday. People involved in the discussion said Nvidia is fundamentally rethinking how the program will work.

Some more established cloud firms such as Nebius declined to participate because they didn’t want Nvidia to eat into their potential profit margins and could raise debt in other ways, the report said. Meanwhile, Nvidia has worried that some of the cloud firms that want to participate in the program would become too financially dependent on the company, said another person. Nvidia is adjusting some of the term sheets and contracts to avoid such a scenario, the report said.