In a surprising move that caught many off guard, Nvidia has paused its upcoming partnership with Arbitrum, one of the leading Ethereum Layer 2 networks. The announcement was expected to go live soon, but Nvidia pulled out at the last minute—offering no explanation.
The collaboration was linked to Nvidia’s Ignition AI Accelerator, part of the company’s Inception Program, which supports promising AI startups. Arbitrum was lined up to be a headline partner, highlighting the growing crossover between AI and blockchain technology.
But just before the news went public, Nvidia backed out—yet again showing reluctance to work with crypto projects.
This isn’t new behavior. Nvidia executives have openly questioned the value of cryptocurrencies. In 2023, the company’s CTO, Michael Kagan, said, “Crypto doesn’t bring anything useful for society,” a sentiment shared by CEO Jensen Huang.
That skepticism has become company policy. Crypto startups are regularly excluded from Nvidia’s major programs, no matter how innovative or well-funded they may be.
Part of Nvidia’s caution stems from past experience. During the 2018 crypto boom, miners snapped up large amounts of Nvidia GPUs. But when the market crashed, the company was left with a massive inventory surplus.
That misstep led to a $5.5 million fine for underreporting crypto-linked revenue—a mistake Nvidia doesn’t seem eager to repeat. Since then, it has kept a careful distance from anything blockchain-related.
While Nvidia has been avoiding crypto, it’s doubling down on artificial intelligence. The company regularly talks up AI’s potential to transform industries and improve lives. There’s no similar excitement when it comes to blockchain.
Interestingly, Nvidia still welcomes AI startups—even when the founders have a background in crypto. As long as the focus stays on AI, they’re in.
The decision to pause the Arbitrum partnership shows that Nvidia’s stance on crypto hasn’t changed. Even as blockchain and AI become more connected, the company isn’t ready to embrace the mix.
For now, Nvidia is drawing a clear line: AI is the future, and crypto is still on the sidelines.
Yes, Nvidia’s Inception and Ignition AI programs explicitly exclude crypto-related companies to manage reputational and regulatory risks.
Nvidia reportedly turned down Arbitrum to maintain its “no crypto” policy, aiming to avoid associations with blockchain projects.
Yes, critics argue that excluding crypto projects could limit breakthroughs where AI and decentralized systems could converge.
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