Amazon (AMZN) Stock Rises as AWS Secures 2 Million Nvidia GPUs in Massive Expansion Deal

Key Highlights

Table of Contents

AWS to acquire 2 million more Nvidia GPUs for rollout between 2027 and 2028
This expansion follows a prior commitment of 1 million chips announced in March
Order encompasses Nvidia Blackwell Ultra, Rubin, and Rubin Ultra GPU models
Amazon will implement Nvidia’s complete physical AI infrastructure for warehouse robotics
After-hours trading saw Nvidia shares surge 4%; Amazon climbed approximately 0.7%

In a significant expansion of their partnership, Amazon has committed to deploying 2 million more Nvidia GPUs throughout its AWS infrastructure by the end of 2028, both companies announced Wednesday. The revelation sparked a 4% after-hours rally in Nvidia shares, while Amazon stock advanced roughly 0.7%.

Amazon.com, Inc., AMZN

The expanded GPU deployment is scheduled for 2027 through 2028. This purchase supplements the 1 million Nvidia chips Amazon committed to acquiring back in March, which are currently being integrated into AWS facilities throughout this year.

Wednesday’s announcement encompasses Nvidia’s premium Blackwell Ultra, Rubin, and Rubin Ultra GPU architectures. These advanced processors are engineered specifically for AI model training and inference operations, with individual units typically listed at prices exceeding tens of thousands of dollars, though enterprise-scale buyers generally secure volume discounts.

Neither Amazon nor Nvidia disclosed specific financial details regarding the agreement.

During Nvidia’s quarterly earnings call Wednesday afternoon, CFO Colette Kress validated the expanded collaboration. She noted that Amazon’s cloud division “is deploying an additional two million GPUs starting this quarter through the second of FY29.”

Nvidia’s Physical AI Platform Coming to Amazon Warehouses

Kress further disclosed that Amazon plans to implement Nvidia’s comprehensive physical AI platform throughout its warehouse robotics operations. This development extends the partnership significantly beyond traditional data center computing applications.

Nvidia CEO Jensen Huang discussed the arrangement during a CNBC interview Wednesday night. “This is going to be a great partnership,” he remarked.

Despite developing proprietary semiconductor solutions through its Annapurna Labs subsidiary—including custom CPUs and the Trainium AI accelerator designed to rival Nvidia’s offerings—Amazon continues substantial investments in Nvidia hardware. Industry reports suggest the upcoming Trainium iteration will incorporate Nvidia networking components.

Major Cloud Providers Maintain Nvidia Dependencies

While Microsoft and Alphabet’s Google are similarly pursuing internal chip development programs, both companies maintain significant Nvidia procurement relationships. Amazon follows this identical strategic approach.

The leading cloud infrastructure providers believe proprietary chip designs can optimize performance for particular computing tasks. However, Nvidia’s GPU technology continues dominating the AI model training landscape across the industry.

With Wednesday’s announcement combined with the March agreement, Amazon’s cumulative Nvidia GPU procurement reaches 3 million processors.

The timing of this disclosure—during Nvidia’s quarterly earnings presentation—proved strategic. The 4% after-hours stock increase demonstrates how significantly investors value these hyperscaler partnership developments.

Huang’s post-earnings CNBC interview emphasized the partnership’s magnitude, with leadership from both organizations publicly endorsing the strengthened collaboration.

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