Nvidia's Non-Hyperscale Cloud Customers Gain Ground

Nvidia's data center business has been on a tear, and CFO Colette Kress says non-hyperscale cloud customers now account for roughly half of its revenue. This is up from Q1 FY2027 when hyperscale customers accounted for about 50% of the total.

According to Nvidia, in Q2 FY2027, which ended in late July, data center revenue surged to a record $89 billion, with hyperscale customers generating $48.7 billion and non-hyperscale cloud providers (ACIE segment) contributing $40.3 billion.

The ACIE cohort includes AI-native startups, enterprises investing in on-premise AI deployments, regional cloud providers, and sovereign customers, which are governments and state-backed entities building domestic AI capacity.

Nvidia's management estimates that global spending on AI infrastructure could reach between $3 trillion and $4 trillion by the end of the decade. The company provides a full-stack platform for AI workloads, including hardware, networking, and software frameworks.