Nvidia & AWS Forge AI Chip Deal Through 2027

Amazon Web Services has finalized a deal to acquire one million Nvidia graphics processing unit (GPU) chips by 2027. The sales are set to commence this year and will continue through 2027, according to an Nvidia executive. This agreement aligns with Nvidia CEO Jensen Huang's outlook for a trillion-dollar sales opportunity for its Rubin and Blackwell chip families within the same timeframe.

The transaction involves a wide array of Nvidia's offerings beyond the million GPUs. It includes Nvidia's Spectrum networking chips and the recently released Groq chips, acquired through a significant licensing deal. AWS intends to utilize these chips, alongside six others from Nvidia, to optimize AI inference—the process of AI systems generating responses and performing tasks.

Nvidia's networking gear, Connect X and Spectrum X, will also be integrated into AWS data centers. While AWS maintains its custom networking equipment, this collaboration signifies a joint effort to deploy advanced networking solutions for critical AI workloads and key customers. Financial terms of the deal were not disclosed.