Over two years since NVIDIA's CEO, Jensen Huang, floated the idea of launching cloud services to rival Amazon AWS, the tech giant has quietly stepped back from direct competition. Last week, NVIDIA embarked on a significant restructuring of its cloud business team. Based on internal memos and insights from individuals close to the situation, this reorganization has led to a shake-up in the leadership of the cloud business division and its associated executives, with several employees exiting the company. The DGX Cloud team, comprising several hundred members, has now been folded into the engineering and operations organization, under the leadership of Senior Vice President Dwight Diercks. Moving forward, the team's primary role will be to support NVIDIA's engineers in crafting the chips essential for open-source AI models, steering away from its previous focus on marketing cloud services to external enterprise clients. Moreover, the newer cloud service offering, DGX Cloud Lepton, will also be absorbed into the engineering ranks.