Amazon and Nvidia deepened their partnership Wednesday, with the two companies announcing an expanded deal that adds 2 million Nvidia GPU chips to Amazon Web Services’ data centers in 2027 and 2028. The announcement, made during Nvidia’s quarterly earnings call, comes just five months after Amazon initially agreed to deploy more than 1 million Nvidia GPUs across AWS infrastructure starting this year.
The new GPUs are designed to handle the heavy compute demands of training and running AI models. Nvidia said in a statement that since the initial agreement, “demand has exceeded those expectations.” Neither company shared financial terms, but given the cost of individual GPU units, industry analysts estimate the deal is worth tens of billions of dollars.
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A partnership that goes beyond chips
The expanded collaboration is notable not just for its size and speed, but because it extends beyond Amazon purchasing more Nvidia hardware. Nvidia said its networking technology, which connects thousands of GPUs into a single system, along with its open models, CPUs, data processing software, and robotics platform, will also be integrated across AWS.
Nvidia CFO Colette Kress said during the earnings call that Nvidia plans to send an unspecified number of Vera CPUs to Amazon, “some integrated with Rubin, others standalone.” Nvidia CEO Jensen Huang has previously touted Vera CPUs as a “brand new $200 billion TAM” for the company, and Kress said shipments to lead partners, including Oracle and SpaceX AI, are already underway.
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The partnership also extends to Amazon’s warehouse robots and enterprise offerings. Amazon plans to adopt Nvidia’s full physical AI stack — including Omniverse, Cosmos, Isaac, and Jetson — to power its fleet of robots. This week, Nvidia introduced a new version of Jetson designed as a more accessible robotics computer for “entry-level edge AI.” On the enterprise side, AWS will host Nvidia’s Nemotron family of open models on Amazon Bedrock and SageMaker.
Amazon’s own chip ambitions
The expanded partnership comes as Amazon ramps up its own AI chip efforts, particularly with CPUs. Amazon has been building custom silicon to lessen its dependence on Nvidia and even compete with the chip giant. Amazon’s AI chief Peter DeSantis has said AWS is in talks to sell its Trainium chips — a direct alternative to Nvidia’s H100 or Blackwell for deep learning workloads — to other companies for use in data centers. Amazon’s Arm-built Graviton CPU is also seen as a challenger to traditional server chips from Intel and AMD.
Amazon has said its custom chip business is growing, noting on its last earnings call that it crossed a $25 billion annualized revenue run rate, driven by $225 billion in total commitments from AI labs like Anthropic and OpenAI. Yet Wednesday’s announcement suggests Nvidia remains the dominant force in AI infrastructure, even as Amazon invests in alternatives.
Nvidia’s record quarter and Rubin ramp
Nvidia reported sales of $96.2 billion for its second quarter, beating analyst estimates. Data center revenue made up the majority at $89 billion, up 117% from a year ago. Nvidia said it expects revenue to reach $108 billion in the third quarter, some of which will come from its next-generation Rubin GPUs, which began production shipments this quarter.
Investors have been watching for Rubin’s initial Q3 sales as a sign that demand will continue into Nvidia’s next generation of hardware. Nvidia has committed $279 billion to secure supply and manufacturing capacity for current and future data-center projects, up substantially from $119 billion last quarter. That commitment includes $92 billion in projected spending for the rest of the fiscal year and another $87 billion in fiscal year 2028.
“The thing that matters for the industry is that AI is now doing productive and useful work,” Huang said during Wednesday’s call. “AI is generating profitable tokens…If we had more compute, we could generate more profitable tokens, which results in more profit for all of the services. This is the exact phase where we’re at, which is the reason why everybody’s leaning in.”
Investors will be watching to see if additional compute indeed translates so neatly into additional profits as AI companies pour hundreds of billions of dollars into infrastructure. For Amazon, the deal secures access to Nvidia’s latest hardware while it continues to develop its own alternatives — a dual-track strategy that positions AWS to meet demand regardless of which chip architecture wins out.
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