AI Chip and GPU developer Nvidia (NVDA) has agreed to sell one million graphics processing units (GPUs) to Amazon (AMZN) in 2027. A Nvidia executive confirmed the report Friday, marking the first official timeline for a major cloud partnership that includes a broad array of chips and networking equipment. Neither AMZN nor NVDA shares responded strongly to the GPU deal, with both stocks down around 1% at press time.
Ian Buck, Nvidia’s vice president of hyperscale and high-performance computing, told Reuters the GPU deliveries would begin this year and extend through 2027. The deal encompasses far more than GPUs, according to Buck. Amazon Web Services will also purchase Nvidia’s Spectrum networking chips and newly released Groq chips, which Nvidia obtained through a $17 billion licensing deal with AI chip startup Groq in late 2025.
In addition, according to the VP, AWS plans to deploy a combination of Groq chips alongside six other Nvidia chip types to optimize AI inference workloads. “Inference is hard. It’s wickedly hard,” Buck told reporters this week. “To be the best at inference, it is not a one-chip pony. We actually use all seven chips.”
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NVIDIA has had a big week, starting with its annual GTC event. The event provided several promising updates and bullish affirmations for the chipmaker, including a target of $1 trillion in revenue. Indeed, CEO Jensen Huang said that the firm’s revenue is likely to double to $1 trillion by 2027. The latest deal with Amazon caps off the week, but NVDA shares have slipped amid broader economic concerns, AI competition, and legal issues with key partners.
Looking long-term as the deal unfolds, Nvidia’s ability to meet the multi-year 1 million unit commitment will decide if it is a success and how NVDA stock performs. Early 2027’s fiscal results will also indicate the financial impact of the AWS partnership.