Nvidia Corporation has paused some deals under a recently announced financing programme that offered credit support to artificial intelligence cloud companies in exchange for a share of their revenue, according to the Wall Street Journal.
The programme was paused less than two months after its announcement after some Nvidia employees raised concerns about potential antitrust scrutiny, the report said, citing people familiar with the matter.
However, the precise reason for the decision remains unclear, while Nvidia could still revise the programme, according to the report.
The move comes as Nvidia faces increasing scrutiny over its investments and financial backing of projects that ultimately generate greater demand for its artificial intelligence chips.
Nvidia has reported strong quarterly earnings and issued upbeat guidance, citing continued and substantial demand for its advanced AI chips.
Chief Executive Officer Jensen Huang defended the company’s investment activities in a post-earnings interview with CNBC, saying AI-linked start-ups had significantly higher capital requirements than conventional businesses.
