- DGX Cloud will help Nvidia’s open source AI efforts, but won’t take on the hyperscalers
- Competition from Amazon and Google is heating up in the chip world
- Shares have hit a ceiling… for now, at least
Nvidia has reportedly scaled back its plans to directly compete with major cloud providers like AWS, Azure and Google Cloud, more than two years after CEO Jensen Huang first introduced the idea.
As a result, The Information claims its DGX Cloud division has been shuffled into Nvidia’s core engineering and operations business under the leadership of SVP Dwight Diercks, who heads up software engineering.
This comes after the company was said to have changed some executive roles in mid-December 2025, with some falling under new roles and some leaving the company altogether.
Nvidia doesn’t want to compete with Big Cloud after all
DGX Cloud is set to live on, but mainly 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 might be.
The shift probably won’t come as a surprise to industry analysts, with internal sources suggesting that the DGX Cloud struggled to attract customers (per Wall Street News reporting).
Other internal speculation suggests that Huang was reluctant to scale the cloud business out of fear that Nvidia might lose would-be 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 its dominance. OpenAI is reportedly in talks with Amazon to access the cloud giant’s Trainium chips, but up until now, the ChatGPT maker has heavily relied on Nvidia’s offerings. Similarly, Meta might gain access to Google’s TPUs, reducing Nvidia’s market share.
All of this while Chinese exports stall. It was only earlier this month that Trump confirmed Nvidia would be allowed to resume the sale of its H200 chips to certain Chinese customers, but competition has already mounted 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 media.
“Our goal has always been to cultivate DGX Cloud as a pilot project and learn how to better build systems for ecosystem partners through it, which has not changed.”
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