Nvidia is reducing its focus on its cloud computing business, DGX Cloud, which had positioned it as a competitor to Amazon Web Services, according to a report from The Information.
The company now plans to use the service, which consists of servers powered by its AI chips, primarily for its own researchers rather than actively pursuing external business customers, according to a person with direct knowledge of the situation.
Nvidia researchers use these servers for various tasks including designing new chips and developing AI models that can run on the chips.
The shift in strategy for DGX Cloud, which had not been previously reported, indicates Nvidia may have encountered limited demand for the service. The company had ambitious goals for the cloud business, believing it could eventually generate $150 billion in revenue.
Despite scaling back its broader cloud ambitions, Nvidia hasn’t completely stopped accepting new customers. The company recently announced that quantum and AI startup SandboxAQ, in which Nvidia has invested, would use the DGX Cloud service.