
Nvidia paused some deals in its AI financing program. The program offered credit to smaller AI cloud firms for revenue share.
The pause follows a record quarter with $96.2 billion revenue.
Nvidia still expects 70% growth next fiscal year.
What happened
Nvidia paused some deals under its AI financing program, which offered credit support to smaller AI cloud companies in exchange for revenue share. Reuters reported the pause on August 27.
Why it matters
The program had raised internal concerns about antitrust scrutiny and control over cloud capacity. The pause comes despite strong results, with Q2 revenue of $96.2 billion, up 106% year over year, and data center revenue up 117% to $89.0 billion.
What to watch
Investors are watching whether Nvidia can expand compute access without becoming financier, backstop, and supplier. As of August 14, short interest was about 1.2% of public float, with 2.5 days to cover.
Ask the AI about this article →
Nvidia's pause of some financing deals comes right after a blockbuster earnings report. The company reported $96.2 billion quarterly revenue and projected 70% growth for the next fiscal year, so the pause is not about weak demand. Instead, it addresses internal worries about antitrust scrutiny and the control Nvidia sought over how participating cloud companies distributed capacity. This suggests Nvidia is being cautious about its aggressive financing model, which included selling GPUs, supporting financing, and sharing in cloud revenue. The pause reduces one source of concern about the blurry line between selling into independent demand and helping create demand. Investors are watching whether Nvidia can balance expanding compute access without becoming too central as financier, backstop, and supplier. Short interest data from August 14 showed about 1.2% of float was short, indicating some lingering skepticism despite strong fundamentals.
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