Nvidia halts revenue-sharing programme with AI cloud service providers

Nvidia has paused a revenue-sharing scheme designed to incentivise artificial intelligence cloud service providers, according to industry reports. The programme, which offered participating companies a percentage of proceeds from AI chip sales, was discontinued last week as the chipmaker reassesses its commercial partnerships.

The suspension signals a strategic recalibration for Nvidia as it navigates intensifying competition in the AI infrastructure market. The move comes amid rapid consolidation and evolving partnerships within the cloud computing sector, where major providers have increasingly developed proprietary chip solutions alongside their reliance on Nvidia's processors.

The exact reasons behind the pause remain unclear, though industry analysts suggest the decision may reflect changing market dynamics and Nvidia's confidence in its dominant position in AI semiconductors. The company has not formally announced the suspension, and details regarding whether the programme will be reinstated or permanently terminated are unavailable.

For cloud providers in the Asia-Pacific region who relied on the revenue-sharing arrangement, the pause presents fresh questions about partnership terms and long-term collaboration models with the dominant AI chipmaker. Nvidia continues to dominate the market for specialised processors powering large language models and other advanced AI applications globally.