NVIDIA Disrupts Tech Supply Chain With New GPU Revenue Sharing Model
NVIDIA is trying something new in the AI infrastructure race, and it goes beyond simply shipping more hardware. The company has rolled out a credit support and revenue sharing model, that could reshape how emerging AI cloud providers get their hands on serious amounts of compute. In plain terms, NVIDIA still gets paid upfront when a cloud provider buys the hardware, but it also collects an ongoing share of the cloud revenue that hardware generates once it's up and running, in a kind of two-for-one on the same stack of GPUs.
This is a significant departure from the old playbook. Traditionally, a company bought the processors, built the data center, rented out the compute, and hoped the math worked out eventually. NVIDIA's new arrangement ties the company far more closely to how that infrastructure performs after the sale closes. To paraphrase NVIDIA's own description, where the old model waited for...
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