Nvidia Pauses AI Cloud Financing Program After Record Earnings
Following one of its strongest quarters in history, with revenue surging to $96.2 billion and profit rising by 126%, Nvidia has paused parts of a financing program designed to support small AI cloud companies purchasing its chips. The move comes amid growing scrutiny over the company's role in facilitating large-scale circular deals involving financial institutions and partners like OpenAI. The affected initiative, launched less than two months ago, provided credit assistance in exchange for revenue shares from participating firms. While Nvidia stated that the broader model remains active and evolving due to high demand, concerns have emerged about potential antitrust issues and whether such arrangements could artificially inflate chip demand. Despite these developments, hyperscaler clients like Amazon continue expanding their use of Nvidia hardware. Nvidia is also forecasting strong growth in CPU sales and plans to return at least half its free cash flow to shareholders. Institutional ownership has increased slightly, with short interest remaining low, suggesting continued confidence among investors.
Topics: AI cloud companies earnings report financing program pause Nvidia