Nvidia's CFO says half of data center sales now come from outside major cloud providers

Nvidia reported fiscal Q2 revenue of $96.2 billion, up 106% year over year, with data center revenue reaching $89 billion. CFO Colette Kress said non-hyperscaler customers, including sovereign AI programs and regional cloud providers, now account for roughly half of data center business. The company issued Q3 guidance above analyst expectations.

The earnings breakdown reveals a notable shift in Nvidia's customer mix. Hyperscalers contributed roughly $49 billion of the $89 billion data center total, while the remainder came from sovereign AI programs, regional cloud providers, enterprise edge deployments, and air-gapped systems. This diversification means Nvidia's performance is no longer tied primarily to the capital expenditure cycles of a few large technology companies.

Venture capital activity is reinforcing this trend. Global AI-focused VC funding surpassed $400 billion in the first half of 2026, with approximately 70% directed toward compute infrastructure, much of which flows back to Nvidia's platform. Additionally, nearly 20 AI-native startups now exceed $1 billion in annualized revenue, up from 13 in the prior quarter, with vertical enterprise software showing the fastest growth.