Nvidia is diverting its AI chip supply away from large cloud providers like AWS, instead targeting smaller ones, while cloud giants are developing their own AI chips to reduce reliance on Nvidia. Microsoft has made cloud security logs free for all customers as a precautionary measure following a reported China-based hack of US government officials' cloud-based emails. The cloud industry is witnessing a shift towards larger-scale AI applications due to the growing need for more powerful infrastructure, but it's uncertain how this will impact existing cloud services and pricing models.