Nvidia Doubles Cloud Spending Commitment to $26 Billion
Nvidia said Wednesday it had struck deals to rent $26 billion of servers from cloud providers over the next six years, doubling the cloud spending commitments it disclosed just three months ago.
The cloud spending plan implies Nvidia will rent several hundred thousand of its own graphics processing units from cloud providers like Amazon and Google that purchase them. Nvidia said in a regulatory filing that it will pay $1 billion to rent servers in the current fiscal year, $6 billion in both 2027 and 2028, $5 billion in 2029, and $4 billion in both 2030 and 2031. That will make Nvidia one of the world’s biggest cloud spenders and users of GPUs.
Nvidia said it might not use all of the capacity. Nvidia said some of its commitments “may be reduced, terminated or sold to others” by the cloud providers from which it rents servers.
Nvidia’s spending commitment increased even though it has stepped back from its nascent cloud computing business known as DGX Cloud, which aimed to rent out GPUs to business customers. These days, Nvidia uses most of the DGX Cloud server capacity for its own internal efforts, The Information has reported. Earlier this summer, Nvidia launched another kind of cloud service, DGX Cloud Lepton, which helps businesses rent GPUs from various cloud providers.
Nvidia’s cloud commitments includes its agreement to rent 10,000 of its AI chips back from cloud startup Lambda, The Information first reported. Nvidia also rents its chips from CoreWeave and major cloud providers including Oracle and Amazon.