Amazon will purchase one million AI chips from Nvidia by the end of next year

Amazon and Nvidia have struck a major deal for cloud chip procurement

In light of concerns about an “AI bubble,” news of new large agreements often stokes investor anxieties. In this context, Amazon announced that by the end of next year it plans to purchase over one million chips from Nvidia for its AWS cloud platform.

Key Deal Details

- Purchase volume: more than 1 000 000 graphics processing units (GPUs) from Nvidia.
- Delivery period: throughout the current year and until the end of next year.
- Financial terms: undisclosed, but Amazon specified which exact models are needed.

What else will be purchased?

Amazon is not limited to GPUs. The order includes a full range of related solutions presented by Nvidia this week:

These components will be used in large quantities as AWS’s cloud division seeks to optimize AI query performance.

Comments from Nvidia representatives

Ian Buck, vice‑president for hyper‑scaler and high‑performance computing products, highlighted the complexity of inference:

> “Inference is incredibly complex. To be the best, you need more than one chip; we use all seven of our models.”

Buck also noted that under the deal Nvidia will supply Connect X and Spectrum X networking equipment to AWS data centers. This is significant because AWS traditionally uses custom solutions, and integrating Nvidia components will require a similarly tailored approach.

Conclusion

The deal between Amazon and Nvidia confirms the willingness of the largest cloud giants to invest in developing computing infrastructure for AI. Despite bubble concerns, large investments demonstrate sustained interest in industry growth.