Nvidia's New Customer Class Outpaces Public Cloud Providers in Data Center Growth

Nvidia's earnings report has revealed that the company's data center revenue has grown significantly, reaching $89 billion in the second quarter of this year. While public cloud providers such as Amazon, Microsoft, and Google still account for a large portion of Nvidia's GPU sales, a new category is emerging as a major driver of growth.

The AI Clouds, Industrial, and Enterprise group (ACIE) generated $40.3 billion in revenue during the quarter, an increase of 25% from last quarter and 138% year over year. This growth rate is nearly twice that of hyperscale customers, which includes Amazon Web Services, Microsoft Azure, and Google Cloud Platform.

While hyperscalers still dominate Nvidia's data center operation, the company's customer base is widening as new adoption drives growth in the AI infrastructure market. The ACIE group consists of AI natives, enterprises, sovereign customers, and specialist clouds that sit between hyperscalers and traditional data centers.