Nvidia offers AI startups compute now, payment later
Instead of just selling chips, Nvidia is offering AI clouds a revenue-sharing and credit-support model built to get GPUs into the hands of companies that could not otherwise afford them.
Nvidia is changing how it gets paid. The company announced on Wednesday a new arrangement in which AI cloud providers can access large volumes of its chips in exchange for a share of the revenue those chips eventually generate, rather than paying the full cost upfront.
The logic, as Nvidia frames it, is a capital problem. Emerging AI companies have historically had limited access to the capital-intensive infrastructure needed to train and run large models, and even long-term customer commitments have often not been enough to unlock financing for compute.
Nvidia’s answer is to let AI clouds buy its hardware and resell Nvidia-powered cloud capacity, with Nvidia collecting standard product revenue on the chips and then a further cut of...
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