Amazon Triples Nvidia GPU Order With 2 Million More Chips for AWS
Amazon adds 2 million Nvidia GPUs to AWS for 2027 and 2028 as AI demand surges, deepening ties despite its $25 billion annualized custom chip business.
Summary
On August 26, 2026, Amazon expanded its Nvidia partnership by ordering another 2 million GPUs for AWS, tripling the more than 1 million unit deployment agreed five months earlier and starting this year. Blackwell Ultra, Rubin and Rubin Ultra chips will enter AWS data centers in 2027 and 2028, with the 2 million GPU addition starting in the third quarter. Terms were undisclosed, but unit costs imply tens of billions of dollars. Nvidia attributed the expansion to demand exceeding expectations among startups, enterprises, AI labs and governments.
AWS will integrate Nvidia networking, open models, CPUs, data processing software and robotics technology. Amazon robots will adopt the Omniverse, Cosmos, Isaac and Jetson physical AI stack, including Nvidia’s new entry level edge AI Jetson, while Nemotron models will reach Amazon Bedrock and SageMaker. Nvidia will supply an unspecified number of Vera CPUs, integrated with Rubin or standalone. CFO Colette Kress expects Vera across major hyperscalers, neoclouds, AI labs and system OEMs, with shipments underway to lead partners Oracle and SpaceX AI. CEO Jensen Huang put Vera’s market at $200 billion in May.
Amazon is simultaneously developing alternatives. AI chief Peter DeSantis said AWS is discussing external data center sales of Trainium, a rival to Nvidia H100 and Blackwell, while Arm-built Graviton challenges Intel and AMD server CPUs. Amazon’s custom chips reached a $25 billion annualized revenue run rate, supported by $225 billion in Anthropic and OpenAI commitments. Nvidia’s second quarter sales hit $96.2 billion, beating estimates, including $89 billion from data centers, up 117%. It expects $108 billion in third quarter revenue as Rubin production shipments begin. Supply and manufacturing commitments rose from $119 billion to $279 billion, including $92 billion for the fiscal year remainder and $87 billion in fiscal 2028. Investors must now test Huang’s claim that more compute produces proportionate profit.
Positives
- Amazon’s additional 2 million GPUs triple its AWS commitment after demand exceeded the companies’ expectations.
- Blackwell Ultra, Rubin and Rubin Ultra will expand AWS capacity for startups, enterprises, AI labs and governments in 2027 and 2028.
- Nvidia generated $96.2 billion in second quarter sales, with data center revenue rising 117% to $89 billion.
- Amazon’s custom chips reached a $25 billion annualized revenue run rate, supported by $225 billion in Anthropic and OpenAI commitments.
- Nemotron, Omniverse, Cosmos, Isaac and Jetson broaden the partnership beyond GPUs into enterprise AI and warehouse robotics.
Risks & concerns
- Undisclosed financial terms leave Nvidia’s exact return uncertain, despite an estimated deal value in the tens of billions of dollars.
- Nvidia’s supply and manufacturing commitments surged from $119 billion to $279 billion, increasing exposure if AI infrastructure demand weakens.
- Amazon remains heavily dependent on Nvidia while trying to establish Trainium and Graviton as competing data center chips.
- Hundreds of billions in industry infrastructure spending may not produce the proportionate profits Jensen Huang expects.
- Trainium, Graviton, Intel and AMD create competitive pressure even as Nvidia’s technology expands across AWS.
