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Nvidia Halts AI Cloud Revenue-Sharing Deals

Wall Street Journal US Business •
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Nvidia has paused its revenue-sharing program with AI cloud providers, less than two months after launching it. The initiative, called AI Compute Partnership, offered financial support to smaller cloud providers in exchange for a share of their revenue. However, concerns arose internally about potential antitrust issues and the extent of Nvidia's control over customers' business operations.

The company stepped back from the program last week, though it may revamp it in the future. Nvidia's move comes amid increased regulatory scrutiny over its business practices, including its recent decision to scale back a proposed financial backstop for a massive data-center project in Ohio. Despite the pause, Nvidia's CFO mentioned the program could generate billions in revenue over time.

The company has not disclosed the exact reasons for the pause.