An Nvidia executive told Reuters on Thursday that the chipmaker is set to sell 1 million of its graphics processing unit chips, along with a host of the AI giant’s other offerings to Amazon’s cloud computing unit by 2027.
Nvidia and Amazon Web Services said this week that AWS had reached a deal to buy its 1 million GPUs. Ian Buck, vice president of hyperscale and high-performance computing at Nvidia, told Reuters on Thursday that the sales would start this year and extend through 2027.
While Nvidia and Amazon did not disclose the terms of the deal, Buck told Reuters, the transaction contains a broad mix of Nvidia chips beyond the 1 million GPUs, including Nvidia’s Spectrum networking chips and the Groq chips that Nvidia released this week after its $17 billion licensing deal with an AI chip startup late last year.
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AWS in particular plans to use a combination of Nvidia’s Groq chips, along with six others from Nvidia, for more efficient inference. Inference refers to the process by which AI systems generate answers and carry out tasks on behalf of users. “Inference is hard. It’s wickedly hard,” Buck told Reuters. “To be the best at inference, it is not a one chip pony. We actually use all seven chips.” Inference refers to the process by which AI systems generate answers and carry out tasks on behalf of users.
The deal also involves putting Nvidia’s Connect X and Spectrum X networking gear in AWS data centers. This is a significant move since AWS data centers use custom networking equipment that AWS has spent years perfecting.
“They’re still going to do that, of course,” Buck said. “But we are collaborating now on deploying Connect X and Spectrum X for those important workloads and biggest customers across AI with AWS.”
The timeframe for this is the same as the one Nvidia CEO Jensen Huang predicted for the company to reach a revenue opportunity of $1 trillion.
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Meanwhile, Amazon founder Jeff Bezos is in early discussions to raise $100 billion for a new fund that would acquire manufacturing companies and seek to use AI to drive and speed up automation, the Wall Street Journal reported on Thursday. According to the report, Bezos travelled to the Middle East to discuss the new fund with sovereign wealth representatives in the region a few months ago.
The report also said that the fund, which is described in investor documents as a “manufacturing transformation vehicle,” plans to target companies in major industries such as chipmaking, defense, and aerospace.