Nvidia Shifts DGX Cloud Focus from External Customers to Internal Research

Nvidia has reportedly reduced its focus on attracting new customers to its cloud computing business, DGX Cloud, and plans to use it more for internal research purposes such as designing new processors. This shift in strategy is in line with Nvidia's focus on developing artificial intelligence and high-performance computing technologies.

Nvidia (NASDAQ: NVDA) has reportedly reduced its focus on attracting new customers to its cloud computing business, DGX Cloud, according to reports from The Information Nvidia scales back DGX Cloud business, shifts focus to ...^[1]. The company is now shifting its strategy to use DGX Cloud primarily for internal research purposes, such as designing new processors and developing AI models Nvidia reportedly lessens focus on its DGX Cloud service business^[2]. This strategic pivot aligns with Nvidia's broader focus on advancing artificial intelligence and high-performance computing technologies.

The DGX Cloud service, which consists of servers powered by Nvidia's AI chips, had been positioned as a competitor to Amazon Web Services. However, the company has encountered limited demand for the service and has scaled back its broader cloud ambitions. Nvidia had previously aimed to generate $150 billion in revenue from its cloud business Nvidia scales back DGX Cloud business, shifts focus to ...^[1].

Despite this shift, Nvidia has not completely stopped accepting new customers. The company recently announced that quantum and AI startup SandboxAQ, in which Nvidia has invested, would use the DGX Cloud service Nvidia scales back DGX Cloud business, shifts focus to ...^[1]. This indicates that while Nvidia is scaling back its external focus, it is still exploring partnerships and collaborations within the industry.

This strategic realignment underscores Nvidia's commitment to internal innovation and research, which is crucial for maintaining its leadership in the AI and high-performance computing markets. As the company continues to develop its technologies, investors should watch for any updates on Nvidia's cloud computing business and its broader strategic direction.