Nvidia will sell 1 million of its powerful graphics processing unit (GPU) chips to Amazon Web Services (AWS), Amazon’s cloud computing division, by 2027. A Nvidia executive confirmed this significant deal, outlining the timeline for the massive chip delivery.
While both Nvidia and AWS announced the agreement this week for the 1 million GPUs, they initially kept the precise timing under wraps. Ian Buck, Nvidia’s vice president of hyperscale and high-performance computing, revealed that the sales will commence this year and continue through 2027.
This timeframe aligns with Nvidia CEO Jensen Huang’s projection of a $1 trillion sales opportunity for the company’s new Rubin and Blackwell chip families. The deal underscores the immense demand for Nvidia’s technology in the rapidly expanding AI market.
Though financial details remain undisclosed, Buck mentioned the transaction includes a broad array of Nvidia’s offerings beyond just the 1 million GPUs. This comprehensive package incorporates Nvidia’s Spectrum networking chips and the newly released Groq chips. Nvidia acquired the Groq technology late last year through a $17 billion licensing deal with an AI chip startup.
AWS specifically plans to leverage a combination of Nvidia’s Groq chips, along with six other Nvidia chips, to improve the efficiency of “inference.” Inference is the crucial process where AI systems generate responses and carry out tasks for users.
Buck emphasized the complexity of inference, stating, “Inference is hard. It’s wickedly hard. To be the best at inference, it is not a one chip pony. We actually use all seven chips.” This highlights the multi-faceted approach required for optimal AI performance.
The deal also involves integrating Nvidia’s Connect X and Spectrum X networking equipment into AWS data centers. This move is particularly noteworthy because AWS has spent years developing and perfecting its custom networking infrastructure.
“They’re still going to do that, of course,” Buck clarified. “But we are collaborating now on deploying Connect X and Spectrum X for those important workloads and biggest customers across AI with AWS.” This collaboration signifies a deeper partnership in supporting high-performance AI workloads.
