Nvidia shakes up the cloud market – silent attack on Amazon, Microsoft, and Google

With DGX Cloud, Nvidia increasingly positions itself as a competitor to established cloud providers—both strategically and lucratively.

6/26/2025, 2:02 PM
Eulerpool News Jun 26, 2025, 2:02 PM

Amazon, Microsoft, and Google have dominated the cloud computing market for years—earning billions in the process. But the quiet rise of Nvidia as a provider of specialized AI cloud services is bringing change to this established order. The company, known until now as a supplier of AI chips, has created its own offering with its DGX Cloud service, which is now gaining significance.

In fiscal year 2024, Nvidia reported long-term cloud contracts totaling $10.9 billion – a tripling compared to the previous year. UBS analysts see DGX Cloud as a potential business with over $10 billion in annual revenue. Simultaneously, Nvidia is specifically investing in AI-cloud newcomers like CoreWeave and Lambda. CoreWeave, listed on the stock exchange since March, expects about $5 billion in revenue this year.

Compared to Amazon's AWS with sales of over 107 billion dollars last year, these figures appear small. However, the ratio of revenue to profit is crucial: AWS recently generated over 60% of Amazon's operating profit. Given the growing demand for AI, even a limited loss of market share could have noticeable consequences.

The DGX Cloud business model undermines the classic structure: Cloud companies buy hardware—mostly Nvidia GPUs—and make them available to Nvidia for their own services. Nvidia, in turn, rents these resources along with software and AI know-how to corporate customers. The deal brings short-term revenue to the hyperscalers but fosters a potential rival. For example, Google demonstrably stayed away from the recent DGX marketplace initiative.

The major cloud providers are meanwhile investing in their own AI chips to reduce dependence on Nvidia. A potential break in business relations is on the table, especially since Nvidia is demonstrating growing independence with DGX Cloud.

Officially, Nvidia doesn't want to be a competitor, but to remain a partner. However, with DGX Cloud, the corporation not only controls critical infrastructures but also access to AI development and expertise – a strategic asset that is gaining importance in a changing market.

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