Nvidia rumored to focus DGX Cloud on own research as demand stays low

Nvidia is pulling back from direct competition with cloud providers like Amazon Web Services, according to The Information. Its GPU cloud service, DGX Cloud, will now be used mainly for Nvidia's own research. The service was originally pitched to banks, pharmaceutical companies, and other enterprises as a way to book computing power directly from Nvidia. But insiders say demand stayed low, partly because prices were higher than those of traditional cloud providers. Nvidia invested around $13 billion to rent back its own chips from AWS and other major clouds, then resold some of that capacity to customers like Amgen and ServiceNow. Publicly, Nvidia denies any shift in strategy. Company executive Alexis Black Bjorlin said DGX Cloud is fully booked and will continue to expand. At the same time, Nvidia has launched DGX Cloud Lepton, a marketplace where cloud providers can offer their own GPU resources.