- DGX Cloud will help Nvidia’s open source AI efforts, but won’t take on hyperscalers
- Competition from Amazon and Google intensifies in the world of chips
- Stocks have peaked… at least for now
Nvidia has reportedly scaled back its plans to compete directly with major cloud providers such as AWS, Azure and Google Cloud, more than two years after CEO Jensen Huang first floated the idea.
As a result, The information says its DGX Cloud division has moved into Nvidia’s core operations and engineering business under the leadership of senior vice president Dwight Diercks, who heads software engineering.
This comes after the company was said to have changed some executive roles in mid-December 2025, with some taking on new roles and others leaving the company entirely.
After all, Nvidia doesn’t want to compete with Big Cloud
DGX Cloud will continue to exist, but primarily to meet internal demand for Nvidia chips used to develop open source AI models rather than being a public hyperscaler like AWS could be.
The change likely won’t come as a surprise to industry analysts, as internal sources suggest DGX Cloud had difficulty attracting customers (according to Wall Street News information).
Other internal speculation suggests that Huang was reluctant to scale the cloud business for fear that Nvidia could lose potential rivals as customers, and we’ve all seen how those customers have contributed to Nvidia’s chipmaking success in recent years.
However, Nvidia stock has recently peaked as other companies threaten its dominance. OpenAI is reportedly in talks with Amazon to access the cloud giant’s Trainium chips, but until now, the ChatGPT maker has relied heavily on Nvidia’s offerings. Similarly, Meta could gain access to Google’s TPUs, reducing Nvidia’s market share.
All this while Chinese exports stagnate. Earlier this month Trump confirmed that Nvidia would be allowed to resume selling its H200 chips to certain Chinese customers, but competition has already increased abroad 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 necessary for cloud partners to be successful,” a company spokesperson told media.
“Our goal has always been to cultivate DGX Cloud as a pilot project and learn how to build better systems for ecosystem partners through it, which has not changed.”
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