Nvidia to Supply Amazon with 1 Million Chips for Cloud by 2027

• Sales begin in 2024 and run through 2027, aligning with Nvidia CEO's stated demand timeline for Rubin and Blackwell chip families
• Beyond 1 million GPUs, the deal includes Nvidia's Spectrum networking chips and Groq chips (from its $17 billion licensing deal) for AI inference, which Nvidia says requires a multi-chip approach
• AWS will deploy Nvidia's Connect X and Spectrum X networking equipment in its data centers, marking a notable shift as AWS has traditionally relied on custom networking infrastructure

Summary: Nvidia-Amazon Cloud Computing Deal

Key Deal Terms:

Nvidia will supply Amazon Web Services (AWS) with 1 million graphics processing unit (GPU) chips between now and 2027, with deliveries starting this year. The deal was announced March 19, though financial terms were not disclosed.

Scope Beyond GPUs:

The agreement extends well beyond the headline GPU figure, encompassing a broad portfolio of Nvidia products including:

• Spectrum networking chips
• Groq chips (following Nvidia's $17 billion licensing deal with an AI chip startup)
• ConnectX and Spectrum X networking equipment
• Seven different chip types for AI inference operations

Strategic Significance:

According to Ian Buck, Nvidia's VP of hyperscale and high-performance computing, the deal emphasizes AI inference capabilities—the process by which AI systems generate answers and perform tasks. Buck noted that optimal inference requires multiple chip types, stating "it is not a one chip pony."

The inclusion of Nvidia's networking gear in AWS data centers is particularly notable, as AWS has traditionally relied on custom-built networking equipment developed over years.

Market Context:

The 2027 timeline aligns with Nvidia CEO Jensen Huang's projections for demand in the company's Rubin and Blackwell chip families. This deal reinforces Nvidia's dominant position in AI infrastructure and AWS's commitment to expanding cloud-based AI capabilities.

Companies Involved:

• Nvidia (supplier)
• Amazon.com/Amazon Web Services (buyer)

The partnership signals continued heavy investment in AI infrastructure by major cloud providers through 2027.