Amazon’s AI ambitions are getting a major boost from the company it has also been trying to challenge. AWS is set to add another 2 million Nvidia GPUs to its data centres, raising the stakes in the race to secure the computing power needed to run the next generation of AI services.
• AWS will add 2 million Nvidia GPUs
• The chips are aimed at demanding AI workloads
• Deployments are planned for 2027 and 2028
The expanded deal arrives just five months after Amazon committed to deploying more than 1 million Nvidia GPUs across AWS. Nvidia says demand has grown faster than expected, with startups, large businesses, AI laboratories and governments all pushing for more computing capacity. The financial terms were not disclosed, although the scale of the hardware involved suggests a deal potentially worth tens of billions of dollars.
• Demand has exceeded Amazon’s earlier expectations
• Multiple customer groups are driving AI infrastructure spending
• The deal could be worth tens of billions of dollars
The partnership is particularly significant because Amazon is simultaneously developing its own AI chips. AWS has invested heavily in Trainium accelerators and Graviton processors as it seeks greater control over its hardware supply and a potential alternative to Nvidia. Despite those efforts, Amazon is still expanding its reliance on Nvidia, whose technology will extend beyond GPUs into CPUs, networking, software and AI infrastructure.
• Amazon continues developing its own AI chips
• Nvidia remains central to AWS’s AI infrastructure strategy
• The partnership now covers a much broader technology stack
Nvidia’s technology will also move deeper into Amazon’s robotics and enterprise operations. Amazon plans to use Nvidia’s physical AI technology across its warehouse robot fleet, including platforms for simulation, robotics development and edge computing. AWS will also make Nvidia’s Nemotron open AI models available through services including Bedrock and SageMaker, giving businesses another route to deploy AI applications.
• Nvidia technology will support Amazon’s warehouse robots
• AWS will offer Nvidia’s Nemotron models to businesses
• The partnership reaches beyond traditional data centre hardware
The bigger story is what Amazon’s spending says about the AI economy. Nvidia reported $96.2 billion in quarterly revenue, with data centre sales reaching $89 billion, while the company expects revenue of $108 billion in the following quarter. As Amazon and other technology giants commit enormous sums to AI infrastructure, the crucial test will be whether all that computing power ultimately produces enough profitable AI services to justify the investment.
• Nvidia’s data centre business continues to dominate its growth
• Next-generation Rubin chips are entering the market
• AI infrastructure spending is becoming a massive corporate bet
Via: Tech Crunch
