- Nvidia announced a new business model that combines revenue sharing and credit support, allowing emerging AI startups access to high-performance, capital-intensive computing infrastructure.
- Under the program, AI cloud providers will sell Nvidia-powered cloud services, allowing the chipmaker to profit from hardware sales and gain a portion of the cloud service providers' future earnings.
- The program's initial rollout includes cloud providers like Sharon AI and Firmus, who are building AI infrastructure using Nvidia’s DSX data center platform.
- Sharon AI plans to deploy up to 40,000 Nvidia GPUs, while Firmus is developing a data center in Batam, Indonesia, expected to scale to 360 megawatts and house up to 170,000 Nvidia GPUs.
- Nvidia is rolling out a new model to provide artificial intelligence startups with access to its computing resources through a mix of revenue-sharing and credit support.
- Nvidia framed the launch of this business model as part of a broader wave of AI and data center partnerships focused on advancing rapidly expanding artificial intelligence technologies.
- Nvidia is increasingly acting like a central bank for AI startups, actively shaping the compute market.
- The strategy comes as investors worry that major customers like Alphabet and Amazon are offering their own custom chips to compete with Nvidia.
Nvidia has introduced a revenue-sharing and credit-support model to assist AI startups in accessing high-performance computing resources.15678
The initiative, announced on Wednesday, allows AI cloud providers like Sharon AI and Firmus to utilize Nvidia's technology without the burden of substantial upfront investments.234
Sharon AI plans to deploy up to 40,000 Nvidia Grace Blackwell GB300 GPUs, while Firmus is developing a data center in Batam, Indonesia, with a capacity for 170,000 GPUs and 360 megawatts of power.
Nvidia's strategy aims to lower entry barriers for startups, enabling them to leverage capital-intensive infrastructure essential for AI development.
The company will earn revenue from both hardware sales and a share of the cloud earnings generated by these partnerships.
Nvidia's move reflects a broader trend in the AI sector, where demand for computing power is surging, likening GPUs to oil in terms of their critical importance.
As Nvidia seeks to diversify its customer base beyond tech giants like Amazon and Google, this model positions it as a central player in the AI startup ecosystem.
"This strategic collaboration with Nvidia marks a pivotal moment in Sharon AI's mission to deliver sovereign, large-scale AI compute infrastructure," said James Manning, cofounder and CEO of Sharon AI.
Tim Rosenfield, co-CEO of Firmus Technologies, emphasized the need for scalable, energy-efficient compute infrastructure for AI-native companies to compete globally.
Nvidia's initiative is a response to the structural shift in AI demand, focusing on production inference workloads that require continuously operating infrastructure at scale.
“Nvidia has introduced a revenue-sharing model aimed at providing AI startups with access to high-performance computing resources. This initiative is part of Nvidia's strategy to expand its influence in the AI sector and reduce reliance on major tech companies.”
Benzinga
CNBC
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