- DGX Cloud will help Nvidia’s open source AI efforts, but won’t take on hyperscalers
- Competition from Amazon and Google intensifies in the world of chips
- Stocks have hit a ceiling…for now, at least
Nvidia has reportedly scaled back plans to compete directly with major cloud providers like AWS, Azure and Google Cloud, more than two years after CEO Jensen Huang first introduced the idea.
Therefore, The information says its DGX Cloud division has been integrated into the core of Nvidia’s engineering and operations business under the leadership of senior vice president Dwight Diercks, who leads software engineering.
This comes after the company reportedly changed some leadership roles in mid-December 2025, with some taking on new roles and others leaving the company altogether.
Nvidia ultimately does not want to compete with the Big Cloud
DGX Cloud is expected to continue, but primarily to meet internal demand for Nvidia chips used to develop open source AI models rather than as a public hyperscaler like AWS could be.
This change likely won’t surprise industry analysts, with inside sources suggesting that DGX Cloud has struggled to attract customers (according to Wall Street News reporting).
Other internal speculation suggests that Huang was reluctant to expand the cloud business for fear that Nvidia would lose potential competitors as customers, and we’ve all seen how those customers have played into Nvidia’s success in chipmaking in recent years.
However, Nvidia shares have recently hit a ceiling as other companies threaten their dominance. OpenAI is reportedly in talks with Amazon for access to the cloud giant’s Trainium chips, but so far the ChatGPT maker has relied heavily on Nvidia’s offerings. Likewise, Meta could gain access to Google’s TPUs, thereby reducing Nvidia’s market share.
All this while Chinese exports are stagnating. It was only earlier this month that Trump confirmed that Nvidia would be allowed to resume selling its H200 chips to some Chinese customers, but competition has already intensified overseas in Nvidia’s absence.
“We will continue to invest in DGX Cloud to provide world-class infrastructure for cutting-edge research and development and the software capabilities necessary for cloud partners to succeed,” a company spokesperson told media.
“Our goal has always been to cultivate DGX Cloud as a pilot project and learn how to better build systems for ecosystem partners, which hasn’t changed.”
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