Arbitrum (ARB) attempted to participate in Nvidia's Ignition AI Accelerator program but was reportedly declined as part of the chipmaker's risk management strategy.

The Layer-2 (L2) network has been strategically working to restore its reputation after facing an 85% price decline.

Nvidia rejected Arbitrum's application to be its Ethereum partner in the Ignition AI Accelerator program, reportedly due to the company's aversion to crypto-related projects for risk control reasons.

Nvidia explicitly stated that cryptocurrency-related firms were not eligible for the program as part of its risk mitigation strategy to maintain its AI-focused brand identity, potentially hindering innovation at the intersection of artificial intelligence and decentralized systems.

Arbitrum is a leading layer-two scaling solution for Ethereum, surpassing competitors like Optimism (OP) in TVL metrics, despite not yet reaching its peak value from December 6, 2024.

The network has initiated a token buyback program to strengthen its ecosystem and address supply shocks post a major token unlock event. While this initiative initially boosted ARB prices by 36%, the token's value has since declined, prompting experts to recommend more long-term strategies to stimulate innovation.

Amidst the rejection from the Nvidia program, Arbitrum is considering an ARB airdrops proposal to incentivize early supporters and maintain competitiveness in the market.