Amazon expands Nvidia chip deal for AWS data centers in 2027 and 2028

In short: Amazon will add 2 million more Nvidia GPU chips to AWS data centers in 2027 and 2028, and the companies are expanding their partnership beyond chip purchases.

What happened

Amazon and Nvidia said they are expanding their partnership. The deal includes adding another 2 million Nvidia GPU chips to Amazon Web Services (AWS) data centers over the next two years.

A GPU is a type of computer chip that is good at the heavy number crunching used to train and run AI models (think of it like adding many more high powered engines to a factory so it can produce more at once). Nvidia said the new chips will include Blackwell Ultra, Rubin, and Rubin Ultra, and they will be delivered for AWS use in 2027 and 2028.

This comes about five months after Amazon agreed to deploy more than 1 million Nvidia GPUs across AWS starting this year. Nvidia said demand exceeded what the companies expected. Neither company shared the price, but TechCrunch reported the size of the deal suggests it could be worth tens of billions of dollars.

The partnership also goes beyond GPUs. Nvidia said its networking equipment (the gear that links thousands of chips together), CPUs (general purpose chips used in servers), software, and robotics tools will be integrated across AWS. Amazon also plans to use Nvidia’s robotics “stack” (a bundle of tools) for its warehouse robots.

Why it matters

Many businesses use AWS as the “rentable” computing behind their apps and services. If AWS adds more AI-focused chips, more companies may be able to build and run AI features faster, but it also shows how dependent big cloud providers still are on Nvidia, even as Amazon builds its own chips.

Source: TechCrunch AI