Nvidia Corp (NASDAQ:NVDA) will deliver one million graphics processing units to Amazon.com, Inc.’s (NASDAQ:AMZN) Web Services.
AWS Locks In Massive Multi-Year GPU Deal
Ian Buck, Nvidia’s vice president of hyperscale and high-performance computing, told Reuters on Thursday that shipments will begin this year and continue through 2027.
While both companies confirmed the agreement earlier, the timeline had not been disclosed.
Amazon and Nvidia did not immediately respond to Benzinga’s request for comment.
Beyond GPUs: Networking And AI Inference Chips Included
The agreement goes beyond GPUs, encompassing a broader suite of Nvidia technologies. This includes Spectrum networking chips and ConnectX systems designed to accelerate data transfer within data centers.
AWS will also deploy a mix of Nvidia’s newer chips, including its recently introduced Groq offerings, alongside several others to improve AI inference — the process of generating real-time outputs from trained models.
$1 Trillion Opportunity Signals Long-Term Growth
The deal aligns with CEO Jensen Huang’s projection of a $1 trillion revenue opportunity tied to Nvidia’s next-generation Blackwell and Rubin chip platforms.
Despite developing its own custom hardware, AWS’s continued reliance on Nvidia underscores the chipmaker’s dominance in the rapidly expanding AI ecosystem.
Price Action: Shares of Amazon closed at $208.77 on Thursday, down 0.52% and edged up 0.13% to $209.04 in after-hours trading. Nvidia closed at $178.56 during the regular session, down 1.02% and rose 0.34% to $179.17 in after-hours trading, according to Benzinga Pro.
Benzinga Edge Stock Rankings indicate Amazon is lagging across short, medium and long-term performance trends. Its Quality score remains relatively solid, ranking in the 95th percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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