Stephen Nellis
SAN FRANCISCO, March 19 (Reuters) – Nvidia (NVDA) will sell 1 million graphics processing unit chips to Amazon’s (AMZN) cloud computing unit by 2027, as well as many of the artificial intelligence giant’s other products, an Nvidia executive told Reuters on Thursday.
Nvidia and Amazon Web Services said this week that AWS had reached an agreement to buy 1 million of its GPUs, but did not disclose the specific timing of the transaction. Sales will begin this year and continue into 2027, Ian Buck, Nvidia’s vice president of hyperscale and high-performance computing, told Reuters on Thursday.
Nvidia CEO Jensen Huang also said at the same time that the company expects the overall sales opportunity for its Rubin and Blackwell series of chips to reach $1 trillion.
Nvidia and Amazon did not disclose financial terms of the deal. But Buck told Reuters that the deal includes a variety of Nvidia chips in addition to 1 million GPUs, including Nvidia’s Spectrum networking chips and the Groq chip, which Nvidia released this week after striking a $17 billion licensing deal with an AI chip startup late last year.
In particular, AWS plans to use Nvidia’s Groq chip in conjunction with six other Nvidia chips to enable more efficient inference, the name of the process by which artificial intelligence systems generate answers and perform tasks on behalf of users.
“The reasoning is hard. It’s very difficult,” Barker told Reuters. “To be the best at reasoning, it’s not a one-chip pony. We actually use all seven chips.”
The deal also includes putting Nvidia’s Connect X and Spectrum X networking gear into AWS data centers. This move is significant because AWS data centers use custom network equipment that AWS has spent years perfecting.
“Of course, they still do it,” Barker said. “But we are now collaborating to deploy Connect X and Spectrum X to address important workloads and our largest customers in AWS artificial intelligence.”
(Reporting by Stephen Nellis in San Francisco; Editing by David Gregorio)
