Nvidia pauses its financial guarantee program for AI clouds, less than two months after its launch

The financial support scheme for AI cloud providers has been suspended after tensions with partners over the degree of control required by Nvidia.

Less than two months after presenting it, Nvidia reportedly suspended the program through which it provided financial support to AI cloud providers. According to people who were aware of the file, the degree of control requested by the manufacturer had indisposed several potential partners from the initial discussions.

The mechanism was based on a take-or-pay commitment: Nvidia guaranteed a minimum income on part of a site's capacity, and in return received a share of the rental income generated above that floor. The company would thus pay twice for the sale of the equipment and then for the operation. Reports also refer to a clause limiting the rental of GPUs to Nvidia-approved customers, which the company contests, as does the termination of the program.

The sequence comes just after record quarterly results: $96.22 billion in revenue, up 106 percent year-on-year, and adjusted earnings of $2.22 per share, above the expected 2.10. The ACIE category, including neoclouds, grew from 138 per cent over one year to $40 billion.