Nvidia Pauses Revenue-Sharing Deals With AI Cloud Firms Amid Antitrust Concerns: Report

Nvidia (NASDAQ:NVDA) has paused some deals under a recent financing program that provided credit support to artificial intelligence cloud companies in exchange for a share of their revenue, according to a report from The Wall Street Journal.

The move comes less than two months after the program's announcement and follows internal concerns over potential regulatory challenges.

Program Halted Amid Scrutiny

The financing arrangement was designed to help smaller AI cloud firms acquire Nvidia's highly sought-after chips. In return for the credit support, Nvidia would receive a portion of the companies' revenue.

However, the program was reportedly put on hold after some Nvidia employees raised concerns about potential antitrust scrutiny, the WSJ reported, citing people familiar with the matter. The precise reason for the decision remains unclear, and the report noted that the company could still choose to revamp the program in the future.

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Broader Context and Market Dominance

This development occurs as Nvidia faces increasing examination of its dominant market position and its investment practices. The company has actively backed numerous projects and startups that, in turn, create more demand for its advanced AI processors.

In a recent post-earnings interview with CNBC, CEO Jensen Huang defended the company's investment activities, stating that AI-linked startups have significantly higher capital requirements than typical ventures. Nvidia's latest earnings report showed blockbuster results and an upbeat forecast, driven by what it described as outsized demand for its AI chips. Nvidia did not immediately respond to a request for comment on the WSJ report.