Nvidia said to consider further push into cloud services space
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GPU giant Nvidia (NASDAQ:NVDA) already operates the DGX Cloud, but the Jensen Huang-led company looks to be pushing further into the cloud services space, potentially going up against the likes of Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT) and Google (NASDAQ:GOOG) (GOOGL).
Nvidia has spoken to one unnamed data center owner about leasing space to power its DGX Cloud, The Information reported, citing a person with direct knowledge of the discussions.
If it were to do so, it would place it further in competition with the aforementioned tech companies, many of whom purchase Nvidia (NVDA) GPUs for their own data center needs, especially amid the explosion of artificial intelligence.
Currently, the DGX Cloud is located in the data centers of companies such as Microsoft (MSFT), Oracle (ORCL) and Google (GOOG) (GOOGL), which hamstrings Nvidia's capabilities.
The tech giants are creating or working on Nvidia alternatives, including Amazon's (AMZN) Inferentia chips, Google's TPUs and Microsoft, which is reportedly working with AMD on new AI chips.
Nvidia has also spoken to smaller cloud providers to use their GPU servers for DGX Cloud, the news outlet added. In recent weeks, Nvidia (NVDA) has signaled support for other cloud providers, including CoreWeave, Applied Digital (APLD) and others.
By considering a push further into cloud services, Nvidia could protect itself if the larger tech companies decide to move away from Nvidia GPUs, while also building out its other revenue streams.
Nvidia, Microsoft, Google and Amazon did not immediately respond to a request for comment.

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