Nvidia to sell 1 million chips to Amazon by end of 2027 in cloud deal 

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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. (Image: Reuters)Nvidia will sell 1 million of its graphics processing unit chips, along with a host of the AI giant’s other offerings, to Amazon.com’s cloud computing unit by 2027, a Nvidia executive told Reuters on Thursday.Nvidia and Amazon Web Services said this week that AWS had reached a deal to buy its 1 million GPUs but had not disclosed the ⁠precise ​timing of the deal. Ian Buck, vice president of hyperscale and high-performance computing at Nvidia, told Reuters on Thursday that the sales would start this year and extend through 2027.That is the same time ​frame ​through which Nvidia CEO Jensen Huang said ⁠the company sees an overall sales opportunity of $1 trillion for its Rubin and Blackwell families of chips.Nvidia ‌and Amazon did not disclose the financial terms of their deal. But Buck told Reuters the transaction contains a broad mix of Nvidia chips beyond the 1 million GPUs, including Nvidia’s Spectrum networking chips and the Groq chips that Nvidia released this 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,” Buck told Reuters. “To be the ‌best at inference, ​it is ​not ​a one chip pony. We actually use all seven chips.”The deal also includes putting Nvidia’s Connect ​X and Spectrum X networking gear in AWS ⁠data centers. That move is significant because AWS data centers use custom networking equipment that AWS has spent years perfecting.Story continues below this ad“They’re still going to ‌do that, ⁠of course,” Buck said. “But we are collaborating now on deploying Connect X and Spectrum X for those ​important workloads and biggest customers across AI with AWS.”