SAN FRANCISCO, March 19 (Reuters) - Nvidia ( NVDA ) 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 ( AMZN )
cloud computing unit by 2027, a Nvidia ( NVDA ) executive told
Reuters on Thursday.
Nvidia ( NVDA ) 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 ( NVDA ), told
Reuters on Thursday that the sales would start this year and
extend through 2027.
That is the same time frame through which Nvidia ( NVDA ) CEO Jensen
Huang said the company sees an overall sales opportunity of $1
trillion for its Rubin and Blackwell families of chips.
Nvidia ( NVDA ) and Amazon ( AMZN ) did not disclose the financial terms
of their deal. But Buck told Reuters the transaction contains a
broad mix of Nvidia ( NVDA ) chips beyond the 1 million GPUs, including
Nvidia's ( NVDA ) Spectrum networking chips and the Groq chips that
Nvidia ( NVDA ) 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 ( NVDA )
Groq chips, along with six others from Nvidia ( NVDA ), 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 ( NVDA ) 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.
"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."