Amazon just tripled its order of Nvidia chips over ‘surging demand’
Amazon has significantly expanded its partnership with Nvidia, ordering an additional 2 million GPU chips for its AWS data centers to meet surging AI demand. This deal occurs alongside Amazon's own efforts to develop proprietary AI chips, signaling a complex 'coopetition' strategy.
Why it matters
The massive scale of this hardware investment underscores the critical role of high-performance GPUs in the current AI infrastructure race.
Amazon and Nvidia just got a lot closer. The two companies announced Wednesday an expanded partnership that includes a deal to add another 2 million Nvidia GPU chips to Amazon’s data centers.
These GPUs, which are designed to handle the heavy compute demands of training and running AI models, include Nvidia Blackwell Ultra, Rubin, and Rubin Ultra GPUs. The chips will head to Amazon Web Services’ data centers in 2027 and 2028.
The announcement, made during Nvidia’s quarterly earnings call, comes just five months after Amazon agreed to deploy more than 1 million Nvidia GPUs across AWS infrastructure starting this year. Nvidia said in a statement that since then, “demand has exceeded those expectations.”
Neither company shared financial terms. It’s unclear what the exact return will be for Nvidia. But considering GPU unit costs, the deal is worth tens of billions of dollars.
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