Under the leadership of CEO Jensen Huang, NVIDIA has gradually adjusted the strategic direction of its cloud business and recently announced a restructuring of its cloud business team. According to internal memos and informed sources, this change means that NVIDIA will no longer actively compete with large cloud service providers such as Amazon AWS, but instead focus on internal AI development.

Newly appointed executive Alexis Black Bjorlin joined NVIDIA from Meta in 2023 and will drive the integration of the cloud team in her new role. The cloud business team, which previously consisted of hundreds of people, will be merged into NVIDIA's engineering and operations organization, led by Senior Vice President Dwight Diercks, and will report directly to Jensen Huang. After the restructuring, the DGX Cloud will mainly serve NVIDIA's engineers, focusing on chip demand and the development of open-source AI models, rather than providing cloud services to external enterprise customers.

Additionally, NVIDIA's newer cloud service, DGX Cloud Lepton, will also be integrated into the engineering team. This service aims to allow cloud service providers to list unused server capacity on NVIDIA's market, although it has started slowly. Jensen Huang first introduced DGX Cloud at the developer conference in March 2023, aiming to create new revenue streams and establish direct connections with AI developers who rent NVIDIA chips.

However, NVIDIA faces challenges in this emerging cloud business. Several former DGX team members pointed out that attracting customers has been very difficult, and due to DGX Cloud running in data centers of multiple cloud service providers, troubleshooting support has become complex. In addition, Jensen Huang is cautious about scaling up the business, fearing that it might affect the delicate relationship with cloud providers.