Nvidia has signed a multi-year agreement with Amazon Web Services to supply AI chips and related infrastructure. The chip designer is expected to deliver one million graphics processors to Amazon’s cloud division through 2027, supplemented by additional technology for networking and data processing.
The partnership underscores the rapid growth in demand for computing power for artificial intelligence. Deliveries will begin this year and continue through the end of 2027, an Nvidia executive told Reuters on Thursday. AWS had previously confirmed that it had placed an order for one million GPUs, but did not provide further details on the timeline at the time. With this agreement, Nvidia is solidifying its position as the leading supplier of AI hardware for hyperscalers.
The deal encompasses more than just graphics chips. Network solutions and specialized AI chips are also part of the collaboration. With this, AWS is focusing on processing AI workloads more efficiently, particularly when running models in production environments. That process, known as inference, enables systems to generate responses and perform tasks for users.
According to Nvidia, this type of AI processing requires a combination of different chip architectures. Instead of relying on a single type of processor, the company is focusing on a broader mix of technologies to optimize performance and efficiency. The cloud provider intends to leverage this approach to further refine its infrastructure and scale it more effectively for large customers.
AWS combines its own network with Nvidia solutions
Notably, AWS will also integrate Nvidia networking equipment into its data centers. This is a significant step, as Amazon has traditionally relied heavily on in-house networking solutions. By partnering with Nvidia in this area, AWS appears to be adopting a hybrid strategy that combines its own technology with external innovations.
Financial details of the agreement have not been disclosed. However, the deal aligns with Nvidia’s broader growth expectations, as the company previously indicated it sees a massive market for its latest chip generations in the coming years. The partnership with AWS could play a key role in this, given the scale at which cloud providers are investing in AI capacity.
With this agreement, both parties are reaffirming their ambitions in the AI market. While Nvidia continues to roll out its technology to the largest cloud providers, AWS is expanding its infrastructure to meet the growing demand for advanced AI services.