Nvidia Pauses AI Cloud Financing Deals Amid Antitrust Concerns

Nvidia has temporarily halted some deals tied to a recently introduced financing program for artificial intelligence cloud companies, amid internal concerns that the arrangement could attract greater antitrust scrutiny, according to a Wall Street Journal report.

The AI chip giant launched the financing structure less than two months ago. Under the arrangement, Nvidia offered credit support to certain AI cloud providers in exchange for a portion of their revenue, helping these companies finance infrastructure and other capital-intensive operations.

However, Nvidia paused some transactions under the program after employees raised concerns about potential competition and regulatory issues, the WSJ reported Thursday, citing people familiar with the matter.

The exact reason behind Nvidia’s decision remains unclear. The company could still modify or restructure the financing initiative rather than abandon it entirely, according to the report.

The development comes as Nvidia faces growing scrutiny over its investments in artificial intelligence companies and infrastructure projects. Some of these investments support businesses that are also major buyers of Nvidia’s graphics processing units, raising questions about whether the chipmaker’s financing activities could indirectly stimulate additional demand for its own products.

Nvidia remains the dominant supplier of advanced GPUs used to train and operate AI models, putting its business relationships and investments under increasing attention as global spending on artificial intelligence infrastructure continues to expand.

The company recently reported another strong quarter and issued an upbeat outlook, pointing to sustained demand for its advanced AI chips. Nvidia CEO Jensen Huang also defended the company’s investment strategy during a CNBC interview following the earnings release.

Huang argued that AI-focused startups require substantially more capital than conventional technology startups because of the significant computing infrastructure needed to develop and deploy artificial intelligence systems.

Despite the reported pause in some AI cloud financing deals, Nvidia has not publicly confirmed whether the broader program will be changed or resumed. The company did not immediately respond to an emailed request for comment.