Nvidia ( NVDA ) will let AI startups use their chips now and pay with a share of future revenue.
The company detailed the cost-sharing program in a July 1 blog post. The move makes Nvidia a funder of AI development rather than a pure hardware vendor.
From Chip Sales to Payroll Calculations
Nvidia usually receives a one-time payment when it sells a graphics processing unit (GPU). This program adds a second, recurring stream to the top.
Cloud partners buy Nvidia systems, then sell access to startups that don’t have their own data centers. Instead, Nvidia takes the money from the chips we make in the cloud.
“This design … provides NVIDIA with recurring revenue, consistent with usage,” read it Blog article, written by Chief Financial Officer Colette Kress.
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The system builds on Nvidia’s a new type of AI computing. It also expands the base beyond the big buyers now reduce their schedules.
Deep Race, and High Race
Developers who take credit have been tied to Nvidia chips and software for years. Sharon AI will implementation up to 40,000 Grace Blackwell GB300 chips under the program.
It’s tough to build 360-megawatt campus in Batam, Indonesia, to an additional 170,000 GPUs. Sharon AI manufactures its architecture as an independent distributor for markets outside of the United States.
Lockdown is required when competitors are benefiting. China has recently set a great example without Nvidia chipsand consumers tend to try cheaper options.
Big Bets on the AI Boom
The structure is similar to what critics call circular money. Nvidia has pledged up to $100 billion to OpenAI. It also owns 7% of CoreWeave, a customer that buys its chips.
Experts liken the loop to the stock market from the dot-com era. Michael Burry and other skeptics see the establishment feeding AI bubble fear.
The money is huge. Morgan Stanley expects that Big Tech’s AI investment will cost $800 billion in 2026. This figure could reach $1.1 trillion in 2027, competing with the US defense budget.
Meanwhile, markets remained calm. NVDA closed at $194.69 on July 2, the last session before the holiday season. Its value hovers around $4.8 trillion, still below its 52-week high.
The upcoming episodes will show how much money the program adds. They will also indicate whether the founders treat Nvidia as a partner or an owner.
A note Nvidia’s New Strategy to Benefit from the AI Boom: Will Developers Pay? appeared for the first time BeInCrypto.
