Nvidia Takes a Step Back from Cloud Competition with Amazon's AWS

Nvidia is pulling back from competing with Amazon's AWS in the cloud computing market. The company has stated that it will focus on its core business of developing graphics processing units (GPUs) and other technologies, rather than competing with AWS. This move is seen as a strategic shift for Nvidia, which has been expanding into new markets in recent years.

Nvidia (NVDA), a leading manufacturer of graphics processing units (GPUs), has announced a strategic shift in its cloud computing strategy. The company is pulling back from direct competition with Amazon's AWS (AMZN) cloud services, according to a report from The Information. Instead, Nvidia will focus on utilizing its own cloud service, DGX Cloud, primarily for its own research and development purposes and as a sandbox for optimizing cloud partners' compute stacks Update: Market Chatter: Nvidia Pulling Back From Cloud Competition With Amazon's AWS^[1].

The decision comes as Nvidia aims to consolidate its efforts on its core business of developing GPUs and other technologies. The company has seen significant growth in data center spending, driven by the AI boom, and expects to capture a substantial portion of this market. Nvidia currently holds 35% of the data center market share, with a market cap of $4.3 trillion Nvidia (NVDA) Stock: AI Giant Eyes $10 Trillion Market Cap as UK Investment Plans Emerge^[2].

Nvidia's move is part of a broader trend in the industry. Data center capital expenditures hit record levels in 2025, and spending is expected to grow significantly in the coming years. The company estimates that the four largest AI companies will spend around $600 billion on data centers, with global spending projected to reach $3-4 trillion when all customers are included Nvidia (NVDA) Stock: AI Giant Eyes $10 Trillion Market Cap as UK Investment Plans Emerge^[2].

Analysts predict that Nvidia could become the world's first $10 trillion company by 2030, driven by its strong position in the data center market. The company's current valuation of $4.3 trillion suggests substantial growth potential Nvidia (NVDA) Stock: AI Giant Eyes $10 Trillion Market Cap as UK Investment Plans Emerge^[2].