Amazon Triples Its NVIDIA GPU Orders to 3 Million Chips as AI Demand Surges
Amazon (AMZN) and NVIDIA (NVDA) expanded their partnership, with Amazon ordering 2 million additional NVIDIA GPUs, including Blackwell Ultra, Rubin, and Rubin Ultra models, for delivery in 2027-2028. The deal extends beyond hardware, encompassing AI collaboration and infrastructure. Amazon also reported a $25B annual revenue run rate for its own chips, with $225B in Trainium commitments. The partnership strengthens both companies' AI strategies, with NVIDIA targeting $1T in Blackwell and Rubin r
How this was made
The 30-second read
Why it matters
The deal adds a multi‑year revenue stream for NVIDIA and secures compute capacity for AWS, but the benefits will accrue over 2027‑28.
Market read
A material AI‑infrastructure partnership that could shape the competitive dynamics of cloud AI services.
What to watch
Potential pricing pressure if Amazon shifts more workload to its in‑house Trainium chips.
Background
Amazon and NVIDIA have been deepening their AI partnership; this is the latest expansion announced in August 2026.
Ticker impact
Amazon announced an expanded partnership to purchase an additional 2 million NVIDIA GPUs for AWS data centers, bringing total orders to over 3 million chips.
Gradual upside over 2027‑28 as spend translates into higher AWS revenue.
The deal is large and multi‑year, but chips arrive years later, making the near‑term price reaction muted.
NVIDIA secured a multi‑year order for over 2 million GPUs from Amazon, reinforcing its position as a top cloud supplier.
Supportive for NVIDIA’s multi‑year revenue outlook, modest near‑term impact.
The order size is material, but revenue will be recognized over several years.
Market effects
Strengthens the AI‑cloud infrastructure theme and may lift other cloud and semiconductor peers.
Positive for U.S. tech sector; limited immediate effect on global markets.
Reinforces the broader AI hardware demand narrative worldwide.
Counterpoint
The long lead‑time and Amazon’s own silicon roadmap could limit the upside from the NVIDIA order.
Key entities
- companyAmazon.com, Inc.
Cloud services provider expanding AI compute capacity.
- companyNVIDIA Corporation
GPU maker supplying AI accelerators to cloud providers.
