Woah.
Nvidia $NVIDIA(NVDA.US) just created a new line of business for themselves. So, all those neoclouds like $Coreweave(CRWV.US) $Nebius(NBIS.US) $IREN(IREN.US) $Applied Digital(APLD.US) $SpaceX(SPCX.US) that have been getting deals with hyperscalers worth billions? It’s because demand for compute, according to Jensen, is growing at a level that is beyond imagination. So, companies need to secure more compute. But, many of these neoclouds are struggling to finance large GPU deployments, even after securing long-term compute demand.So…Nvidia is going to help them out and share in the upside.“This new model enables AI clouds to procure NVIDIA infrastructure for AI-native, enterprise and ISV customers through economic alignment with a revenue-sharing and credit-support model. Through the partnership, AI clouds will sell NVIDIA-powered cloud services, with NVIDIA earning both standard product revenue and a share of the cloud revenue on the supported capacity. This structure accelerates adoption of NVIDIA platforms among the high-growth, high-conviction AI native sector, and provides NVIDIA with a recurring, usage-linked earnings stream.”Looks like Nvidia is going to make sure the best neoclouds don’t fail and this also shifts from a one-time GPU sale to a recurring, usage-based revenue stream…which just creates many more longer-term monetization opportunities.Source: amit
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