August 28, 2026, (Inside AI) — Nvidia has paused parts of a financing program that offered credit support to AI cloud companies in exchange for a share of their revenue. The pause happened last week, according to sources familiar with the matter. The program was announced less than two months ago.
The initiative aimed to help small AI cloud firms secure capital for Nvidia chip purchases. Nvidia could still revamp the program or fold it into another one later. An Nvidia spokesperson said the broader business model remains active.
"The new business model ... that opens up compute access to the fast-growing AI ecosystem is still in place and continues to evolve due to high demand," an Nvidia spokesperson said.
The pause comes as Nvidia faces growing investor scrutiny over its financial ties to customers. The company has been pumping money back into the AI ecosystem. Critics worry about circular deals that could artificially inflate demand.
Revenue-Sharing Model Hits a Snag
Under the paused program, Nvidia would earn revenue from chip sales and a share of cloud revenues derived from Nvidia-powered capacity. Nvidia told some cloud providers they could only rent chips to approved customers. It also preferred capacity spread among multiple smaller firms rather than one large customer.
In proposed deals, Nvidia would receive 50% of any revenue cloud providers earned through its chips beyond a certain threshold. Some potential partners were irked by the extent of control Nvidia sought. Some employees expressed concerns the initiative could draw antitrust scrutiny.
Nvidia had sought to rent compute capacity back from cloud customers if they could not sell it. This guaranteed buyer made it easier for firms to borrow capital for chip purchases. The company said the model could drive billions in revenue over the medium to long term.
Financing Deals Raise Antitrust Questions
Nvidia this month helped arrange $500 billion in financing from major U.S. financial institutions for its customers. It also agreed to guarantee up to $105 billion to help OpenAI lease a massive data center. These moves have intensified concerns about Nvidia's influence over the AI ecosystem.
Sources say there are sensitivities around how much Nvidia can dictate customer business practices. The paused program was designed to support financing needs at small AI cloud firms. Nvidia's broader financing efforts continue despite the pause.
Industry observers note that Nvidia's role as both supplier and financier creates potential conflicts. The company faces regulatory pressure in multiple markets over its dominant position in AI chips. The pause may signal a recalibration of its strategy.
Nvidia's earnings call this week highlighted the model's revenue potential. But investor fears over circular deals persist. The company has not indicated when or if the paused program will resume.
