NVDA Stock Slips After-Hours On Report Nvidia Hit Pause On Cloud Revenue-Share Deals

• The initiative offered credit support to smaller AI cloud providers in exchange for a cut of revenue from customers renting the chips.
• The Journal noted that the company could later recast the program or fold it into another effort. 
• In this week’s quarterly filing, Nvidia said commitments under the program totaled $36 billion and typically last six years.

Shares of Nvidia (NVDA) slipped 1% in after-hours trading on Thursday following a report that the chipmaker had paused some new revenue-sharing deals with AI cloud companies.

The stock closed up 9% in the regular trading session after Nvidia posted stronger-than-expected quarterly results and a bullish outlook after-hours on Wednesday.

Pause Comes Weeks After Launch

The Wall Street Journal reported that Nvidia last week backed away from parts of a financing program it unveiled in early July, citing people familiar with the matter. The initiative offered credit support to smaller AI cloud providers in exchange for a cut of revenue from customers renting the chips. The Journal noted that the company could later recast the program or fold it into another effort.

The exact reason for the pause could not be learned, stated WSJ. Some Nvidia employees had reportedly warned customers that the structure could draw antitrust scrutiny. The company had reportedly also pressed partners to rent capacity only to approved users and to spread it among several smaller customers rather than to one large tenant, causing resistance from some cloud providers.

An Nvidia spokeswoman, however, told the newspaper that the July model “is still in place and continues to evolve due to high demand.”

How Did The Deals Function

Nvidia described the July plan as a way to help cloud firms buy its systems before they had enough signed customers to borrow against. Nvidia would sell the hardware and then collect a share of the subsequent rental income. If a provider could not fill the machines, Nvidia would rent unused capacity itself. The first named partners were Australia’s Sharon AI, planning to build up to 40,000 of Nvidia’s latest chips, and Firmus Technologies, building a large campus in Batam, Indonesia, sized for as many as 170,000 chips.

That formal program, called AI Compute Partnership, followed earlier, one-off backstops. In 2025, Nvidia agreed to buy leftover CoreWeave capacity under a deal first valued at $6.3 billion through 2032. That deal had drawn investor questions about Nvidia using its own balance sheet to support demand for its chips.

Nvidia’s Latest Disclosures

In this week’s quarterly filing, Nvidia said commitments under the program totaled $36 billion and typically last six years. Those pledges shrink as partners sell the capacity to other customers, it noted.  

Chief Financial Officer Colette Kress also told investors on Wednesday during the company’s earnings call that the new revenue stream could add billions of dollars over time.

“In this model, we get paid twice — once on the hardware sale and again through the share of rental revenue, a highly recurring stream layered on top of a one-time equipment purchase. Over time, this model can expand our addressable market and create a recurring usage-linked revenue stream alongside our core platform revenue, with the potential to drive billions in revenue over the medium to long term,” Kress said.

How Did NVDA Retail Traders React?

On Stocktwits, retail sentiment around NVDA stock remained in ‘extremely bullish’ territory over the past 24 hours, while message volume was at ‘extremely high’ levels.

NVDA stock has gained 22% year-to-date. 

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