{"id":71009,"date":"2026-08-27T18:08:12","date_gmt":"2026-08-27T22:08:12","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/nvidia-halts-ai-cloud-revenue-sharing-as-u-s-treasury-targets-lower-bond-yields\/71009\/"},"modified":"2026-08-27T18:08:12","modified_gmt":"2026-08-27T22:08:12","slug":"nvidia-halts-ai-cloud-revenue-sharing-as-u-s-treasury-targets-lower-bond-yields","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/nvidia-halts-ai-cloud-revenue-sharing-as-u-s-treasury-targets-lower-bond-yields\/71009\/","title":{"rendered":"Nvidia Halts AI Cloud Revenue-Sharing as U.S. Treasury Targets Lower Bond Yields"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> has reportedly paused its newly launched revenue-sharing agreements with AI cloud providers, marking a shift in its strategy to monetize the AI infrastructure boom.<\/li>\n<li><strong>U.S. Treasury Secretary Scott Bessent<\/strong> confirmed the administration&#39;s focus on lowering long-term bond yields, predicting they will fall as inflation cools.<\/li>\n<li><strong>New Zealand\u2019s ANZ Consumer Confidence Index<\/strong> fell to <strong>98.0<\/strong> in August, a <strong>1.3%<\/strong> monthly decline following a sharp <strong>8.8%<\/strong> surge in July.<\/li>\n<li>The <strong>U.S. Treasury<\/strong> is pushing for a joint G20 communique to address global growth, sovereign debt challenges, and financial literacy during upcoming summits.<\/li>\n<\/ul>\n<h2>Nvidia Shifts Strategy on AI Cloud Financing<\/h2>\n<p><a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) has halted its controversial revenue-sharing agreements with AI cloud companies, according to reports from the <em>Wall Street Journal<\/em>. These deals, which were part of a financing initiative launched earlier this summer, offered credit support to emerging cloud providers in exchange for a percentage of the revenue generated by <a href=\"https:\/\/stockmarketwatch.com\/stock\/NVDA\" data-internallinksmanager029f6b8e52c=\"15\" title=\"stock: NVDA\">Nvidia<\/a>-powered infrastructure.<\/p>\n<p>The pause comes as the chipmaker continues to report record-breaking financial results, including a <strong>106% year-over-year revenue increase<\/strong> to <strong>$96.2 billion<\/strong> in the July quarter. While the revenue-sharing model was intended to help smaller AI firms scale without massive upfront capital, it faced scrutiny regarding its long-term viability and the potential for creating &quot;accounting bubbles&quot; within the AI sector.<\/p>\n<h2>Treasury Official Targets Lower Long-Term Yields<\/h2>\n<p>A senior <strong>U.S. Treasury<\/strong> official stated on Thursday that the administration is actively working to bring down long-dated bond yields. The official expressed confidence that yields will naturally retreat as inflation continues to cool over time, providing relief to a market that has seen the <strong>30-year Treasury yield<\/strong> hover near <strong>5.3%<\/strong>, levels not seen since 2007.<\/p>\n<p>The Treasury recently doubled its buyback program for longer-dated securities, increasing operations from <strong>$2 billion to $4 billion<\/strong>. This intervention aims to provide liquidity and stabilize a market rattled by global uncertainties and domestic fiscal concerns. <em>Market analysts remain divided on whether these administrative &quot;gimmicks&quot; can override the fundamental pressures of a $40 trillion national debt.<\/em><\/p>\n<h2>G20 Agenda Focuses on Growth and Debt<\/h2>\n<p>As the United States prepares to host the <strong>G20 Finance Ministerial<\/strong> in Asheville, North Carolina, Treasury Secretary Scott Bessent has outlined a &quot;pro-growth&quot; agenda. The U.S. is seeking a joint communique from member nations that prioritizes reducing global imbalances and tackling the escalating sovereign debt crisis.<\/p>\n<p>The agenda also includes a push for modernizing financial regulation and promoting global financial literacy. <em>The summit is expected to be a critical test of the Trump administration&#39;s ability to coordinate international economic policy amidst rising trade tensions and regional conflicts.<\/em><\/p>\n<h2>New Zealand Consumer Sentiment Eases<\/h2>\n<p>New Zealand&#39;s consumer appetite showed signs of cooling in August, with the <strong>ANZ-Roy Morgan Consumer Confidence Index<\/strong> slipping to <strong>98.0<\/strong>. This <strong>1.3%<\/strong> month-over-month decline follows a massive <strong>8.8%<\/strong> rebound in July, suggesting that the initial optimism from recent interest rate adjustments may be leveling off.<\/p>\n<p>Despite the dip, the index remains significantly higher than its April trough of <strong>80.3<\/strong>. Households continue to grapple with high living costs and a stagnant housing market, though inflation expectations have remained relatively stable at <strong>4.6%<\/strong>. <em>Economists suggest that the &quot;direction of travel&quot; for the Kiwi consumer remains positive, even if the pace of recovery has slowed.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Nvidia (NVDA) has reportedly paused its newly launched revenue-sharing agreements with AI cloud providers, marking a shift in 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