Nvidia has paused parts of the revenue-sharing programme it launched in July

Nvidia has halted some of the transactions under the financing programme it introduced eight weeks ago, in which it extends credit to AI cloud companies buying its chips and takes a cut of what those chips later earn, the Wall Street Journal reported on Thursday.

The scheme was announced on 1 July, and it does an unusual amount of work for one arrangement. Nvidia sells the chips, guarantees to rent back capacity that a customer cannot resell, and then collects a share of the cloud revenue those chips generate, meaning the company is paid at the point of sale and again along the way.

Two objections surfaced internally, according to The Wall Street Journal. Employees flagged that the structure could attract antitrust scrutiny, and they raised the related question of how far Nvidia could reasonably go in dictating how its customers run their businesses.

That second concern was not hypothetical....

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