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FollowingAmazon expands Nvidia's GPU deployment
Amazon's (AMZN) share price opened under pressure as AWS continues to promote the development of self-developed AI chips while expanding cooperation with Nvidia. AMZN shares closed at US$256.32, down 1.52%, after falling back from the US$259 to US$260 range. The stock price tested the $256 support level and selling pressure continued.
Amazon Web Services (AWS) plans to deploy an additional 2 million Nvidia GPUs between 2027 and 2028. This deployment will cover Blackwell Ultra, Rubin and Rubin Ultra systems, covering the AWS infrastructure. Previously, Amazon had promised to install 1 million Nvidia chips starting in 2026.
Comprehensive deployment will give AWS millions of NVIDIA GPUs across multiple generations of hardware. This expansion reflects AWS's continued reliance on Nvidia hardware to handle computing workloads. While Amazon purchases Nvidia products, it continues to develop its own processors through Annapurna Labs.
Amazon has invested in Trainium processors as part of its own hardware development. The company maintains its partnership with Nvidia, and AWS continues to add Nvidia systems to its infrastructure. As a result, the expanded agreement puts Nvidia hardware at the heart of AWS capacity growth.
AWS deepens cooperation with Nvidia
AWS and Nvidia also plan to build a dedicated AI factory for the U.S. government, using 100,000 GPUs. These facilities will use NVIDIA hardware to support government computing needs. In addition, AWS will introduce NVIDIA's Nemotron model into its Bedrock and SageMaker services.
Amazon robots will use Nvidia's physical AI platform to automate warehousing. The move extends cooperation into the robotics field, while AWS expands its use of Nvidia computing systems. These projects cover cloud services, government infrastructure, software tools and warehousing operations.
As a result, the cooperation between the two parties has gone beyond GPU procurement to cover software and physical computing applications. NVIDIA provides hardware and technology, while AWS integrates relevant capabilities into multiple Amazon services. While AWS is increasing computing capacity, the two companies are deepening their cooperation.
Amazon adheres to its own chip strategy
Despite the larger investment in Nvidia GPUs, Amazon continues to promote the development of Trainium processors through Annapurna Labs. AWS said Annapurna Labs will work with Nvidia to extend NVLink Fusion technology to Trainium chips and add high-bandwidth memory to its systems.
This strategy allows Amazon to combine self-developed processors with Nvidia interconnection technology. At the same time, AWS can continue to deploy Nvidia GPUs to meet workloads that require large-scale computing power. The strategy incorporates Nvidia hardware and Amazon's self-developed chips into AWS's infrastructure planning.
Amazon's latest plan combines external GPU supply with continued internal chip development. The company will add 2 million Nvidia GPUs while advancing Trainium technology through Annapurna Labs. As a result, AWS has expanded its infrastructure while maintaining the continuous evolution of its self-developed processor technology.
