- DGX Cloud will help Nvidia’s open source AI efforts, but will not take on the hyperscalers
- The competition from Amazon and Google is intensifying in the chip world
- Stocks have hit a ceiling… for now, anyway
Nvidia has reportedly scaled back its plans to directly compete with major cloud providers such as AWS, Azure and Google Cloud, more than two years after CEO Jensen Huang first introduced the idea.
As a result The information claims that its DGX Cloud division has been blended into Nvidia’s core engineering and operations business under the leadership of SVP Dwight Diercks, who heads software engineering.
This comes after the company is said to have changed some senior roles in mid-December 2025, with some falling into new roles and some leaving the company altogether.
After all, Nvidia doesn’t want to compete with Big Cloud
DGX Cloud is set to live on, but primarily to serve internal demand for Nvidia chips used to develop open source AI models rather than as a public-facing hyperscaler in the way that AWS could be.
The move is unlikely to come as a surprise to industry analysts, with internal sources suggesting that DGX Cloud was struggling to attract customers (as of Wall Street News reporting).
Other internal speculation suggests that Huang was reluctant to scale the cloud business for fear of Nvidia losing potential rivals as customers, and we’ve all seen how those customers have played into Nvidia’s chipmaking success in recent years.
However, Nvidia shares have hit a ceiling recently as other companies threaten their dominance. OpenAI is reportedly in talks with Amazon to get access to the cloud giant’s Trainium chips, but until now the ChatGPT maker has relied heavily on Nvidia’s offering. Similarly, Meta can access Google’s TPUs, reducing Nvidia’s market share.
All this while Chinese exports grind to a halt. It was only earlier this month that Trump confirmed that Nvidia would be allowed to resume sales of its H200 chips to certain Chinese customers, but competition has already picked up 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 needed for cloud partners to succeed,” a company spokesperson told the outlet.
“Our goal has always been to grow DGX Cloud as a pilot project and learn how to better build systems for ecosystem partners through it, which hasn’t changed.”
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