Amazon AWS and Nvidia Expand AI Partnership to Deploy 2 Million More GPUs in 2027-2028

TradingKey - Amazon (AMZN)'s AWS and Nvidia (NVDA) recently announced a major expansion of their AI infrastructure partnership, with AWS planning to deploy an additional 2 million Nvidia GPUs between 2027 and 2028 across its global data centers and AI infrastructure. This is a further expansion on top of AWS beginning the deployment of over 1 million Nvidia GPUs this year, reflecting that major cloud computing providers' demand for AI computing power continues to grow rapidly.

According to plans released by both companies, the new round of deployment will include next-generation Nvidia GPUs such as the Blackwell Ultra, Rubin, and Rubin Ultra. In addition to increasing GPU counts, AWS plans to introduce Nvidia Vera CPUs and further expand cooperation in areas including high-speed networking, AI models, data processing, and robotics.

In March of this year, AWS announced it would add over 1 million Nvidia GPUs starting in 2026. However, AI customer demand subsequently outpaced expectations, leading both companies to raise the scale of future deployments to an additional 2 million units. Under current plans, AWS will become one of Nvidia's most important major customers for next-generation AI chips in the coming years.

The two companies will also further expand US government AI infrastructure construction, planning to deploy 100,000 Nvidia GPUs within AWS's secure cloud environment for US federal government and national security-related AI missions. In addition, Amazon's robotics business will adopt Nvidia's AI technology for warehouse robotics training and automation.

Notably, Amazon itself is rapidly developing in-house AI chips, such as Trainium, aiming to lower AI computing costs and reliance on external GPUs. However, this planned deployment of an additional 2 million Nvidia GPUs indicates that demand for Nvidia's high-end GPUs among major cloud providers remains exceptionally strong, at least for the next few years.

For Nvidia, AWS's 2-million GPU plan further enhances revenue growth visibility for the Rubin era. Nvidia recently projected that its fiscal 2028 revenue will grow by approximately 70%, significantly above previous market expectations. The company also stated that demand for AI chips continues to exceed supply capacity, with one of the main factors limiting growth no longer being customer demand, but rather the supply of key components such as memory chips.