Nvidia reportedly lessens focus on its DGX Cloud service business

Nvidia (NASDAQ:NVDA) has reduced its focus on attracting new customers to its cloud computing business, DGX Cloud, according to a report by The Information.

Rather, Nvidia plans to use its cloud business more for internal research uses, such as designing new processors or developing artificial intelligence models, the report said, citing people familiar with the issue.

However, in the same report, Nvidia's Alex Black Bjorlin, who runs DGX Cloud, said there has been no strategy change.

"Our internal researchers need significant computing, so do all of our customers," Bjorlin said. "So our strategy is still the same."

DGX Cloud was launched in March 2023 as a way to provide customers access to clusters of Nvidia's high-powered GPUs. It was initially hosted on Oracle (ORCL) Cloud Infrastructure.

"Nvidia DGX Cloud is a unified AI platform on leading clouds that connects every AI workload to optimized, high-performance, NVIDIA AI infrastructure," according to its website. "Built to handle the most demanding AI workloads from training large language models to serverless inference at scale it accelerates AI application development with integrated software, managed services, and expert guidance."

Nvidia shares inched up 0.5% during Friday morning market action.