Nvidia’s New Way to Profit From the AI Boom: Will Startups Pay Up?

Mitrade Team
coverImg
Source: DepositPhotos

Nvidia (NVDA) will let AI startups use its chips now and pay with a share of future revenue.

The company detailed the revenue-sharing program in a July 1 blog post. The move casts Nvidia as a financier of the AI buildout rather than a pure hardware seller.

From Chip Sales to Compute Royalties

Nvidia normally earns a single payment when it sells a graphics processing unit (GPU). This program adds a second, recurring stream on top.

Cloud partners buy Nvidia systems, then sell access to startups that lack the capital for their own data centers. In return, Nvidia takes a cut of the cloud revenue those chips generate.

“This structure … provides NVIDIA with a recurring, usage-linked earnings stream,” read an excerpt in the blog, co-authored  with Chief Financial Officer Colette Kress.

Follow us on X to get the latest news as it happens 

The plan builds on Nvidia’s new AI compute model. It also widens the base beyond big buyers now trimming their orders.

A Deeper Moat, and Rising Competition

Startups that take the credits stay tied to Nvidia’s chips and software for years. Sharon AI will install up to 40,000 Grace Blackwell GB300 chips under the program.

Firmus is building a 360-megawatt campus in Batam, Indonesia, for up to 170,000 more GPUs. Sharon AI frames its buildout as sovereign compute for markets outside the United States.

The lock-in matters as rivals gain. China recently trained a large model without Nvidia chips, and buyers keep testing cheaper options.

A Bigger Bet on the AI Boom

The design echoes what critics call circular financing. Nvidia has pledged up to $100 billion to OpenAI. It also owns about 7% of CoreWeave, a customer that buys its chips.

Analysts liken the loop to vendor financing from the dot-com era. Michael Burry and other skeptics see the setup feeding AI bubble fears.

The sums are vast. Morgan Stanley expects Big Tech’s AI capital spending to top $800 billion in 2026. That figure could reach $1.1 trillion in 2027, rivaling the US defense budget.

Meanwhile, markets stayed calm. NVDA closed at $194.69 on July 2, the last session before the holiday break. Its value sits near $4.8 trillion, still below its 52-week high.

Nvidia (NVDA) Stock Performance. Source: TradingView Nvidia (NVDA) Stock Performance. Source: TradingView

The coming quarters will show how much revenue the program adds. They will also reveal whether startups treat Nvidia as a partner or a landlord.

mitrade Don't Miss Today's Market    Moves Start trading Forex, Gold & Crypto today    Regulated platform | Fast withdrawals

Disclaimer: The content presented above, whether from a third party or not, is considered as general advice only. CFD trading involves significant risk of loss. Past performance does not guarantee future results. This article serves informational purposes only and does not constitute financial advice. Consider your risk tolerance before trading.

goTop
quote
Related Articles
placeholder
Chip Stocks Sink on AI Slowdown Calls, But Analysts Doubt a Crash Is NearChip stocks extended a rout on Monday, triggered by an AI slowdown call from Anthropic CEO Dario Amodei that sent the Philadelphia Semiconductor Index down as much as 5.9%.Nvidia fell 3.4%, Broadcom s
Author  Beincrypto
4 hours ago
Chip stocks extended a rout on Monday, triggered by an AI slowdown call from Anthropic CEO Dario Amodei that sent the Philadelphia Semiconductor Index down as much as 5.9%.Nvidia fell 3.4%, Broadcom s
placeholder
Tesla Enters Vietnam With a $3 Million Sales Unit — and No AnnouncementThe Tesla Vietnam unit launched with roughly $3 million in capital, marking the carmaker’s formal entry into one of Southeast Asia’s fastest-growing electric vehicle markets.Tesla announced nothing. I
Author  Beincrypto
Yesterday 02: 05
The Tesla Vietnam unit launched with roughly $3 million in capital, marking the carmaker’s formal entry into one of Southeast Asia’s fastest-growing electric vehicle markets.Tesla announced nothing. I
placeholder
Trump Phones Jensen Huang Live Against AI Slowdown Fears. NVIDIA Stock ReactsPresident Donald Trump phoned Nvidia Chief Executive Jensen Huang live on stage Monday. He told a room of investors that fear of artificial intelligence (AI) is a hoax. Nvidia shares fell anyway.The c
Author  Beincrypto
Yesterday 02: 03
President Donald Trump phoned Nvidia Chief Executive Jensen Huang live on stage Monday. He told a room of investors that fear of artificial intelligence (AI) is a hoax. Nvidia shares fell anyway.The c
placeholder
New Tesla Roadster Uses SpaceX Tech. Will It Impact the Stock Price?Tesla will reveal its long delayed second generation Roadster on October 1 in Waco, Texas, pairing a “Go for launch” teaser image with a countdown clock and a demonstration built around SpaceX thruste
Author  Beincrypto
Sept 14, Mon
Tesla will reveal its long delayed second generation Roadster on October 1 in Waco, Texas, pairing a “Go for launch” teaser image with a countdown clock and a demonstration built around SpaceX thruste
placeholder
Nvidia Gets the AI Hype. Dell Gets the Billionaire FortuneIn 1988, a secretary at Dell could get rich on the company stock. In 2026, the stock is up roughly 350%, and almost all of that money lands on one man.That man is Michael Dell. This week he passed Jef
Author  Beincrypto
Sept 14, Mon
In 1988, a secretary at Dell could get rich on the company stock. In 2026, the stock is up roughly 350%, and almost all of that money lands on one man.That man is Michael Dell. This week he passed Jef
Live Quotes
Name / SymbolChart% Change / Price
NVDA
NVDA
0.00%0.00

US Stocks Related Articles

  • The AI trade is splitting — is money moving from chips into software?
  • Megacaps are masking weakness underneath the US market — what does it mean for traders?
  • How to Buy Micron Stock (MU): A Beginner's Guide for Australian Investors
  • Stocks slide as oil nears US$95 and bond yields surge — what should investors watch now?
  • Broadcom shares are down 25% — can its AI outlook restart the rally?
  • AI Memory Stocks Rally After Nvidia Earnings: SanDisk, Micron and SK Hynix Rise — Which Stock Is Best to Buy?

Click to view more