Nvidia Reorganizes Cloud Division and Pivots Focus, The Information Reports

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Nvidia restructured its cloud division last week and stepped back from directly competing with major cloud providers, The Information reported, citing people familiar with the matter and an internal memo.

This comes more than two years after CEO Jensen Huang outlined a vision to build a cloud computing service capable of rivaling Amazon (AMZN) Web Services.

The restructuring reassigned the head of the cloud unit along with several related executives, while others left the company. Going forward, Nvidia’s DGX Cloud team will pivot toward supporting internal engineering and infrastructure needs.

Shares of Nvidia rose 3% to close at $189.21 on Tuesday.

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