Nvidia will supply one million graphics processing unit chips to Amazon Web Services (AWS) in a deal that extends through 2027. The deal, which also includes other Nvidia AI offerings, will have Nvidia supply its networking and AI chips that will enhance AWS cloud computing capabilities, as well as efficient AI inference tasks.
Speaking on the deal last week, Nvidia’s vice president of Hyperscale and HighPerformance Computing, Ian Buck, said his company and AWS had reached a deal to buy its one million GPUs but had not disclosed the precise timing of the deal.
Quoting the executive, Reuters said the sales would start this year and extend through 2027, the same time frame the company is expected record an overall sales opportunity of $1 trillion for its Rubin and Blackwell families of chips.
Though the two tech giants are yet to disclose the financial terms of the deal, Buck informed that the transaction contains a broad mix of Nvidia chips beyond the one million GPUs, including Nvidia’s Spectrum networking chips and the Groq chips that Nvidia released last week after its $17 billion licensing deal with an AI chip startup late last year.
In particular, AWS plans to use a combination of Nvidia’s Groq chips, along with six others from Nvidia, for more efficient inference, the name for the process by which AI systems generate answers and carry out tasks on behalf of users. “Inference is hard. It’s wickedly hard. “To be the best at inference, it is not a one chip pony. We actually use all seven chips,” Reuters quoted Buck as saying.
The deal also includes putting Nvidia’s Connect X and Spectrum X networking in AWS data centers. That move is significant because AWS data centers use custom networking equipment that AWS has spent years perfecting. “They’re still going to do that, of course. But we are collaborating now on deploying Connect X and Spectrum X for those important workloads and biggest customers across AI with AWS,” Buck said.
