Guided by CEO Jensen Huang, NVIDIA has made significant adjustments to its cloud business strategy and unveiled a reorganization of its cloud business team. In a strategic shift, the company is stepping back from direct competition with major cloud service providers. Instead, it is redirecting its efforts towards in - house AI development.

The newly - appointed Alexis Black Bjorlin has been entrusted with the crucial task of facilitating the integration of the cloud team. This team has now been assimilated into the engineering and operations organization, and will directly report to Jensen Huang.

Following the restructuring, the cloud team's DGX Cloud is set to primarily cater to internal engineers. Its main focus will be on meeting chip requirements and advancing the development of open - source AI models. Additionally, the newer DGX Cloud Lepton has also been folded into the engineering team.

Despite these changes, NVIDIA still confronts several hurdles in its cloud business. Attracting customers remains a challenge, and the complexity of troubleshooting support adds to the difficulties. Given these issues, Jensen Huang is maintaining a cautious stance regarding the expansion of the business's scale.