Stock Breakouts (@stock_breakouts)
Nvidia is backing GPU cloud demand
$NVDA is reportedly offering financial backstops to smaller GPU cloud providers in exchange for a cut of their cloud revenue.
The structure gives neoclouds more confidence to finance GPU purchases and data centers because Nvidia may rent unused capacity if customers do not fill it.
This is not just chip sales.
It is Nvidia helping finance the AI compute ecosystem around its own hardware.