Amazon Doubles Down on Nvidia Partnership with $10 Billion-Plus Chip Order
Amazon has agreed to purchase an additional 2 million Nvidia GPU chips for its data centers, expanding on a previous deal announced just five months ago. The new order brings the total number of Nvidia GPUs Amazon will deploy across its AWS infrastructure to over 3 million.
The expanded partnership between the two companies includes not only the increased chip supply but also the integration of Nvidia's technology and software into various aspects of AWS, including warehouse robots and enterprise offerings.
Nvidia CEO Jensen Huang stated during a quarterly earnings call that 'the thing that matters for the industry is that AI is now doing productive and useful work.' He also mentioned that if there were more compute available, it could result in additional profits for services.
The deal's value is not disclosed, but considering GPU unit costs, it's estimated to be worth tens of billions of dollars. Nvidia has committed $279 billion to secure supply and manufacturing capacity for current and future data-center projects, with a significant portion of that allocated for the remainder of the fiscal year.