Nvidia's internal emails reveal a 'fundamental disconnect' with major software clients (www.businessinsider.com)

Internal Nvidia emails obtained from this summer reveal the company is struggling to sell its enterprise AI software suite — including Nvidia AI Enterprise (NVAIE), Run:ai, Omniverse and vGPU — to large, highly regulated customers. Sales teams report a need for a unified “company message” and more education for both account teams and clients; procurement and legal groups in finance and healthcare reportedly don’t understand Nvidia’s software sales processes. Negotiations are getting hung up on data-security and indemnity obligations, higher damages caps demanded by customers, and other legal risk points. Nvidia declined to comment. Internally, Nvidia forecasted $78.7M in software sales for Q3 FY2026, with stand‑alone software at 110% of target, software sold alongside hardware only 39% of goal, and NVAIE projected at 186% of target — but the company doesn’t break out software revenue publicly and hardware remains its core business. For the AI/ML community, the disclosures underscore enterprise adoption frictions beyond technical performance: legal, procurement and compliance are now primary bottlenecks for deploying production AI in regulated industries. Technically, NVAIE is built to run on Nvidia GPUs and CUDA and is intended to create recurring, lock‑in revenue by bundling tooling with hardware — but the emails show Nvidia must clarify product packaging, risk allocation, and deployment support to scale adoption. The episode signals broader industry growing pains as organizations move from experimentation to regulated, production deployments of AI.