15:51Machine-translated from Azerbaijani by AIRead in Azerbaijani
Nvidia Pauses Part of Revenue-Sharing Program Launched in July
Nvidia has paused some transactions under a new financing program in which it provides financial support to artificial intelligence companies to purchase its chips and receives a share of the revenue those chips subsequently generate. According to The Wall Street Journal, the company introduced the program just eight weeks earlier, on July 1. Unlike ordinary chip sales, this model creates several revenue streams for Nvidia. The company first sells chips to a customer, then guarantees that any computing capacity the customer cannot sell will be leased, and also receives a share of the cloud revenue generated by those chips.
According to the report, two main concerns about the program emerged within Nvidia. Employees first said that, given the company’s market position, the model could trigger antitrust investigations. The other concern involved the extent to which Nvidia could control its customers’ businesses and dictate terms to them. The company also imposed certain restrictions on which companies could lease chips under the program. Rather than having computing capacity concentrated in the hands of one large customer, Nvidia preferred to distribute it among several smaller artificial intelligence companies. Some partners said these terms were more restrictive than they had expected. Nvidia has not officially confirmed that the program has been paused. However, the company has not denied the program’s existence either. An Nvidia spokesperson said the new business model introduced in July remains in effect and is being developed further because of high demand. According to The Wall Street Journal, Nvidia is considering changing the program’s terms or incorporating it into one of its existing financing programs.
According to the report, two main concerns about the program emerged within Nvidia. Employees first said that, given the company’s market position, the model could trigger antitrust investigations. The other concern involved the extent to which Nvidia could control its customers’ businesses and dictate terms to them. The company also imposed certain restrictions on which companies could lease chips under the program. Rather than having computing capacity concentrated in the hands of one large customer, Nvidia preferred to distribute it among several smaller artificial intelligence companies. Some partners said these terms were more restrictive than they had expected. Nvidia has not officially confirmed that the program has been paused. However, the company has not denied the program’s existence either. An Nvidia spokesperson said the new business model introduced in July remains in effect and is being developed further because of high demand. According to The Wall Street Journal, Nvidia is considering changing the program’s terms or incorporating it into one of its existing financing programs.