NVIDIA (NVDA, Financial) is strategically reducing its dependence on major tech firms like Microsoft, Amazon, and Google by forging new partnerships. The company recently announced a multibillion-dollar chip deal with Saudi Arabia's Humain and revealed the UAE's plans to collaborate with the U.S. government to build one of the world's largest data centers.
These "sovereign AI" deals are pivotal to NVIDIA's strategy of expanding its customer base beyond Silicon Valley. With a market capitalization of $3.2 trillion, NVIDIA aims to diversify beyond hyper-scale enterprises. Currently, large cloud computing groups account for over half of its data center revenue.
The company is also focusing on empowering potential competitors to Amazon Web Services, Microsoft Azure, and Google Cloud. This includes incorporating "neocloud" firms like CoreWeave, Nebius, Crusoe, and Lambda into its growing NVIDIA Cloud Partner Network.
