Nvidia Halts Revenue-Sharing Deals Amid Antitrust Concerns

Nvidia has paused its revenue-sharing deals with AI cloud companies as part of its new financing initiative, according to The Wall Street Journal. The program offered credit support to small AI cloud firms in exchange for a share of their revenue.

The chip giant stepped back from the program last week, citing concerns over antitrust scrutiny and sensitivities around the extent to which Nvidia can dictate how its customers do business.

Nvidia had sought to rent compute capacity back from cloud customers if they were unable to sell it, providing them with a guaranteed buyer. The company would earn revenue on the sale of the hardware itself and then a share of its customers' cloud revenues derived from Nvidia-powered capacity.