NVDA
Compute for the cool kids
Nvidia is making it easier for AI startups to get their hands on the one thing they always seem to need more of: compute. The company launched a new cloud and revenue-sharing program that lets AI cloud providers offer Nvidia-powered infrastructure, with Nvidia collecting money not just from hardware sales but also a slice of future cloud revenue.
That’s a pretty slick setup. Instead of just selling the shovels in the AI gold rush, Nvidia is now trying to own part of the mine too.
Why investors should care
For Nvidia, this does a few things at once:
- It helps small AI companies afford expensive infrastructure without needing a venture-backed war chest the size of a small country.
- It gives cloud partners a reason to build on Nvidia's platform instead of shopping around.
- It creates a potential long-tail revenue stream tied to the growth of those AI startups.
The first wave includes providers like Sharon AI and Firmus, with plans tied to Nvidia's DSX data center platform. Sharon AI says it could deploy up to 40,000 Grace Blackwell GB300 GPUs, which is the kind of number that makes your average server room cry.
The circular-financing debate lives on
Of course, not everyone is throwing confetti. Nvidia has already been under the microscope for its aggressive AI investments, including big stakes in companies like Corning and IREN. Critics say the strategy can look a little too cozy — as if money is just circling the AI ecosystem in a fancy lap dance.
Supporters say that's missing the point: if Nvidia can help build the infrastructure that makes AI spend more, then maybe the company is just smartly planting seeds in the fastest-growing garden on the planet.
Big picture: Nvidia isn’t just selling chips anymore. It’s trying to become the toll booth, the landlord, and maybe even the tour guide for the entire AI economy.