- Amazon has tripled its order of Nvidia chips due to surging demand.
- The new chips will be deployed in AWS data centers in 2027 and 2028, and the announcement comes just five months after Amazon agreed to deploy Nvidia chips starting this year.
- Financial terms were not disclosed, but the deal is estimated to be worth tens of billions of dollars based on GPU unit costs.
- Nvidia’s technology, including networking hardware, open models, CPUs, data processing software, and robotics platform, will be integrated across AWS.
- Nvidia will also send an unspecified number of Vera CPUs to AWS, some integrated with Rubin and others standalone, according to Nvidia CFO Colette Kress.
- Nvidia has committed $279 billion to secure supply and manufacturing capacity, up from $119 billion last quarter, to meet AI demand.
Amazon has significantly increased its order of Nvidia chips, tripling it to 2 million units in response to a surge in demand for AI capabilities. This expanded partnership, announced during Nvidia's quarterly earnings call, will see the chips deployed in AWS data centers by 2027 and 2028.
The new order includes advanced GPUs such as Nvidia's Blackwell Ultra and Rubin models, designed to meet the heavy computational needs of AI model training and operation. Nvidia's CFO, Colette Kress, noted that the company will also supply an unspecified number of Vera CPUs, some integrated with Rubin and others standalone.67
Nvidia's decision to expand its partnership with Amazon was influenced by “surging demand” from various sectors, including startups, enterprises, AI labs, and governments. The chipmaker reported a remarkable $96.2 billion in sales for the second quarter, with data center revenue accounting for the majority at $89 billion, up 117% from a year ago. Nvidia anticipates revenue will reach $108 billion in the third quarter, bolstered by the demand for its next-gen Rubin GPUs.1
To meet this growing demand, Nvidia has committed $279 billion to secure supply and manufacturing capacity for current and future data-center projects, a significant increase from $119 billion last quarter. This investment underscores the chipmaker's strategy to enhance its capabilities in the rapidly evolving AI landscape.8
“The expanded deal, estimated at tens of billions of dollars, will also integrate Nvidia's networking hardware, open models, CPUs, and robotics platform across AWS. Nvidia has committed $279 billion to secure supply and manufacturing capacity, up from $119 billion last quarter, to meet AI demand.”
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