Nvidia Confirms Sale of 1 Million GPUs to AWS Before 2027

LootboxPhobia · 2026-03-20T18:20:57+00:00

Nvidia executives confirmed that the company will deliver 1 million graphics processors to Amazon AWS between 2026-2027, involving Spectrum networking chips and Groq chips. This major partnership will drive optimization of AI inference workloads, while AWS will also deploy Nvidia's networking equipment. The two companies did not disclose financial details of the agreement, and Nvidia expects to face trillion-dollar sales opportunities in the future.

LootboxPhobia

2026-03-20 18:20:57

Abstract generation in progress

Investing.com—NVIDIA (NASDAQ: NVDA) executive confirms to Reuters that the company will deliver 1 million graphics processors to Amazon.com (NASDAQ: AMZN)’s AWS cloud computing division between 2026 and 2027. This is the first public disclosure of a major cloud partnership timeline, covering a broad range of chips and network equipment.

Ian Buck, Vice President of Large-Scale and High-Performance Computing at NVIDIA, told Reuters that GPU deliveries will start this year and continue through 2027.

According to Buck, the agreement involves much more than GPUs. Amazon Web Services will also purchase NVIDIA’s Spectrum network chips and the newly released Groq chips, which NVIDIA acquired at the end of 2025 through a $17 billion licensing deal with AI chip startup Groq. AWS plans to deploy Groq chips alongside six other types of NVIDIA chips to optimize AI inference workloads—that is, the process of AI systems generating responses and performing tasks.

“Inference is hard. Really hard,” Buck told Reuters. “To do inference at the best level, you can’t rely on just one chip. We’re actually using all seven types of chips.”

The agreement also includes deploying NVIDIA’s Connect X and Spectrum X network devices in AWS data centers, a significant shift since AWS has traditionally relied on custom network equipment developed internally over many years.

“Of course, they will continue to use those devices,” Buck said when discussing AWS’s proprietary hardware. “But now we’re working together to deploy Connect X and Spectrum X for AWS’s critical workloads and largest AI customers.”

Neither company disclosed the financial terms of the deal.

Trillion-Dollar Opportunity

The timeline of the AWS agreement aligns with CEO Jensen Huang’s forecast that NVIDIA faces a $1 trillion sales opportunity by 2027 in the Rubin and Blackwell chip series. This estimate does not include CPUs, network chips, Groq-based products, or a variant called Rubin Ultra, suggesting the total addressable market could expand significantly.

Huang stated that Groq integration could generate $300 billion in annual revenue per gigawatt, with about 25% of GPU workloads expected to connect with Groq chips. The NVIDIA-Groq system, called LPX, is positioned as an optional integration with NVIDIA’s Vera Rubin platform but has not yet been widely adopted.

Key Points to Watch

Investors should focus on:

GPU delivery progress: whether NVIDIA can fulfill its multi-year commitment of 1 million units and the breakdown by chip generation
Groq deployment timeline: when AWS will begin scaling inference-optimized chips beyond pilot projects
Network equipment adoption: the extent to which AWS shifts from custom devices to NVIDIA’s Connect X and Spectrum X
FY2027 performance: expected to be announced early in 2027, revealing the financial impact of the AWS partnership
Competitor responses: how AMD and other rivals will react to NVIDIA’s expanding influence in AWS infrastructure

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