By Adam Levy
Publication Date: 2026-05-09 21:45:00
Few companies have benefited more from the artificial intelligence megatrend than Nvidia (NVDA +1.73%). The company has leveraged its market-leading GPU design capabilities to capture a massive share of the rapidly expanding AI compute market. It’s built an entire ecosystem around its chips, ensuring it remains a key component of future data center buildouts.
And Amazon (AMZN +0.55%) is one of its largest customers. The online retailer is also the largest public cloud computing platform, renting compute capacity to enterprise customers. It plans to spend about $200 billion building data centers and outfitting them with chips this year, up from $131.8 billion last year. A large portion of that spending will go toward chips, including Nvidia’s latest GPUs and ancillary chips.
But it’s not all good news for Nvidia. Amazon CEO Andy Jassy also shared a surprising revelation during the company’s first-quarter earnings call.
Image source: Getty Images.
1 million Nvidia GPUs coming to Amazon Web Services
First, the good news.
During the previous quarter, Amazon and Nvidia agreed to a deal that will have Amazon take delivery of 1 million Nvidia GPUs by the end of 2027. The deal also includes other Nvidia chips and networking equipment.
Demand from Amazon Web Services (AWS) will generate tens of billions of dollars in revenue over the next two years for Nvidia. Meanwhile, Amazon can lock down supply and pricing for GPUs and secure the capacity its customers demand.
“We will…
