Nvidia Hits Pause on Cloud Revenue-Sharing Deals Amid Antitrust Worries

Nvidia, a leading chipmaker, has paused some new revenue-sharing deals with AI cloud companies. The Wall Street Journal reported that the company backed away from parts of its financing program last week, citing people familiar with the matter.

The initiative offered credit support to smaller AI cloud providers in exchange for a cut of revenue from customers renting Nvidia's chips. However, some employees had reportedly warned customers that the structure could draw antitrust scrutiny.

Nvidia's Chief Financial Officer Colette Kress said during the company's earnings call on Wednesday that the new revenue stream could add billions of dollars over time.