Nvidia's Pivot: From Cloud Competitor to Chip Supplier
Nvidia is scaling back its cloud computing efforts, specifically its DGX Cloud service, which was initially aimed at competing directly with major cloud providers like Amazon Web Services. The company has committed $13 billion to rent its own AI chips from larger cloud providers. Nvidia's shift in strategy comes after realizing that its DGX Cloud service wasn't attracting significant external customers.
Anissa Gardizy write for The Information
Nvidia is stepping back from its nascent cloud computing business, which had put it in quasi-competition with Amazon Web Services. It has lessened its efforts to attract businesses to the cloud service, dubbed DGX Cloud, said a person with direct knowledge of the situation. Instead, Nvidia plans to primarily use the service, which consists of servers powered by its AI chips, for its own researchers, this person said. Employees use such servers for everything from designing new chips to developing AI models that can run on the chips.
The move is seen as a strategic adjustment to focus on its core strengths in AI chip manufacturing.