Nvidia Retreats from Cloud War, Focuses DGX Cloud Internally

• Nvidia has scaled back its ambitious plan to directly compete with major cloud providers like Amazon, Google, and Microsoft.
• Its DGX Cloud division will now primarily serve internal Nvidia engineers for AI model development, rather than external customers.
• The decision stems from technical challenges in operating across diverse cloud infrastructures and strategic concerns about alienating key AI chip customers.
• Nvidia CEO Jensen Huang's earlier vision for DGX Cloud to challenge the "big three" and generate $150 billion in revenue has been revised.
• The company will now focus on its core strength: supplying AI accelerators to other cloud providers and using DGX Cloud for internal R&D.

Why It Matters: Nvidia shifts DGX Cloud focus to internal R&D, avoiding direct competition with cloud giants.