Arbitrum Withdraws from Accelerator Program After Nvidia Crypto Association

Tensions between blockchain technology and the chip industry become apparent as Arbitrum – Ethereum’s leading Layer 2 platform – is forced to withdraw from Nvidia’s AI Reactor accelerator program due to Nvidia’s reluctance to publicly associate with the cryptocurrency sector.

Arbitrum Foundation has announced that they withdrew from Nvidia’s AI Reactor accelerator program after Nvidia refused to “publicly associate with blockchain and cryptocurrency.” This announcement came after the Arbitrum community expressed concerns about the lack of transparency surrounding Nvidia’s removal of Arbitrum from its partner list.

Earlier reports said Nvidia ended the deal that would have made Arbitrum the exclusive Ethereum partner for the Ignition AI Accelerator program, backed by Nvidia and Tribe. The program was supposed to offer AI development support and cloud credits to the network.

However, according to the Arbitrum Foundation, Nvidia recently shifted its position, agreeing to work with Arbitrum as long as its name wasn’t included in any public crypto-related announcements.

“Arbitrum was not removed from the AI Ignition Accelerator — the team made the decision to disengage after Nvidia asked to remove its brand from crypto-related announcements, signaling a lack of long-term commitment,” a Foundation spokesperson said. 

Despite removing Arbitrum from its website, Nvidia still maintains relationships with other blockchain projects such as Bittensor and Modulus Labs. The Arbitrum Foundation stated that their project was accepted into the Reactor program in January, but when they prepared to announce it, Nvidia requested that the information be kept confidential.

Arbitrum is a leading Layer 2 scaling solution for Ethereum, with a Total Value Locked (TVL) exceeding $9 billion. The project’s ARB token dropped approximately 7% in the 24 hours following this announcement.