Nvidia has paused some transactions tied to a recently introduced financing program designed to support artificial intelligence cloud companies, according to a report from the Wall Street Journal.
The arrangement offered credit support to AI cloud providers in exchange for a share of their revenue.
Nvidia Pauses AI Cloud Financing Program
According to the Wall Street Journal, Nvidia halted parts of the program less than two months after it was announced.
The report said some Nvidia employees had raised concerns that the structure could attract antitrust scrutiny.
However, the exact reason behind the decision remains unclear.
The company could still modify or redesign the financing program in the future, according to people familiar with the matter.
Nvidia Faces Growing Scrutiny Over AI Investments
Nvidia has faced increasing attention over its investments and financial backing of companies that may later become major buyers of its chips.
Critics have questioned whether some of these arrangements could create additional demand for Nvidia hardware while also strengthening the company’s position across the artificial intelligence industry.
The latest development comes as regulators and investors pay closer attention to Nvidia’s growing influence across the AI ecosystem.
Strong AI Chip Demand Continues
Despite the financing concerns, Nvidia recently reported strong quarterly earnings and issued an upbeat outlook.
The company said demand for its advanced AI chips remained exceptionally strong.
Chief Executive Jensen Huang also defended Nvidia’s investment strategy during a CNBC interview following the earnings release.
Huang argued that AI-focused startups often require significantly more capital than traditional technology companies because of the high cost of computing infrastructure.
Nvidia Could Still Revise the Program
The Wall Street Journal report suggested that Nvidia may not have abandoned the idea entirely.
Instead, the company could adjust the structure of the program to address legal or regulatory concerns.
Nvidia did not immediately provide a public response to a request for comment.
Overall, the pause highlights the growing scrutiny surrounding Nvidia’s expanding role in artificial intelligence financing, cloud infrastructure and semiconductor demand.
