Amazon Web Services strikes dual AI chip deals with Nvidia and Cerebras to dominate inference
12 Sources
[1]
Amazon Will Use Cerebras' Giant Chips to Help Run AI Models
Amazon.com Inc. plans to use chips from startup Cerebras Systems Inc. alongside its own Trainium processors, a combination that the companies say will be able to better run AI software. Amazon Web Services, the biggest provider of cloud computing power, will begin offering a new service based on
[2]
Nvidia to sell 1 million chips to Amazon by end of 2027 in cloud deal
SAN FRANCISCO, March 19 (Reuters) - Nvidia (NVDA.O), opens new tab will sell 1 million of its graphics processing unit chips, along with a host of the AI giant's other offerings, to Amazon.com's (AMZN.O), opens new tab cloud computing unit by 2027, a Nvidia executive told Reuters on
[3]
Cerebras Systems, Amazon strike deal to offer Cerebras AI chips on Amazon's cloud
SAN FRANCISCO, March 13 (Reuters) - Amazon.com (AMZN.O), opens new tab and Cerebras Systems on Friday said they have reached a deal to combine the two companies' computing chips in a new service aimed at speeding up chatbots, coding tools and other artificial intelligence services. Valued at $23.1
[4]
Nvidia and AWS strike massive GPU supply deal through 2027
On March 19, senior executives at Nvidia said the company has reached an agreement with the cloud computing division of Amazon to supply large-scale GPU infrastructure through 2027. According to Reuters, Nvidia and Amazon Web Services (AWS) confirmed a deal involving the purchase of one million
[5]
Nvidia Deepens Grip on Cloud AI With Major AWS Chip Deal - Decrypt
Observers say rising inference demand is reshaping infrastructure and competition. Nvidia will supply Amazon Web Services with a massive volume of GPUs through 2027 as the cloud provider ramps up its AI infrastructure and looks to meet growing demand. AWS announced earlier this week that it plans
[6]
AWS will bring Cerebras' wafer-size WSE-3 chip to its cloud platform - SiliconANGLE
AWS will bring Cerebras' wafer-size WSE-3 chip to its cloud platform Amazon Web Services Inc. will make Cerebras Systems Inc.'s WSE-3 artificial intelligence chip available to its customers. The companies announced the initiative today. It's part of a multiyear partnership that will also see AWS
[7]
Nvidia to sell 1 million chips to Amazon by end of 2027 in cloud deal - The Economic Times
Nvidia and Amazon Web Services said this week that AWS had reached a deal to buy its 1 million GPUs but had not disclosed the precise timing of the deal. Ian Buck, vice president of hyperscale and high-performance computing at Nvidia, told Reuters on Thursday that the sales would start this year
[8]
Nvidia To Deliver 1 Million AI Chips To Amazon Web Services By 2027 In Massive Multi-Chip Deal Set To Supercharge Inference And Cloud Computing - Amazon.com (NASDAQ:AMZN), NVIDIA (NASDAQ:NVDA)
AWS Locks In Massive Multi-Year GPU Deal Ian Buck, Nvidia's vice president of hyperscale and high-performance computing, told Reuters on Thursday that shipments will begin this year and continue through 2027. While both companies confirmed the agreement earlier, the timeline had not been
[9]
Cerebras Systems, Amazon strike deal to offer AI chips on AWS cloud
Amazon Web Services and Cerebras Systems have joined forces. They will combine their computing chips in a new service. This service aims to speed up AI applications like chatbots and coding tools. Cerebras chips will be integrated into Amazon data centres. They will work alongside Amazon's
[10]
Amazon's AWS Partners With Cerebras Systems To Deliver Faster AI Inference For LLMs - Amazon.com (NASDAQ:AMZN)
The partnership aims to deliver the world's fastest AI inference for large language models (LLMs). Unmatched Speed Through Disaggregation The new solution integrates AWS Trainium chips with Cerebras CS-3 systems. By using "inference disaggregation," the system splits workloads. Trainium handles
[11]
Nvidia confirms 1 million GPU sale to AWS through 2027 By Investing.com
Investing.com -- NVIDIA Corporation (NASDAQ:NVDA) will deliver 1 million graphics processing units to Amazon.com's (NASDAQ:AMZN) AWS cloud computing division between 2026 and 2027, an executive confirmed to Reuters, marking the first official timeline for a major cloud partnership that includes a
[12]
Cerebras Systems, Amazon strike deal to offer Cerebras AI chips on Amazon's cloud
SAN FRANCISCO, March 13 (Reuters) - Amazon.com and Cerebras Systems on Friday said they have reached a deal to combine the two companies' computing chips in a new service aimed at speeding up chatbots, coding tools and other artificial intelligence services. Valued at $23.1 billion, Cerebras is a
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Amazon Web Services has secured two major partnerships to strengthen its position in AI computing infrastructure. The cloud computing unit will receive 1 million Nvidia GPUs through 2027 while simultaneously deploying Cerebras Systems' chips alongside its own Trainium processors. Both deals target AI inference workloads, where trained models generate real-time responses to user queries.
Amazon Web Services Secures Dual AI Chip Partnerships
Amazon Web Services has locked in two significant partnerships that signal a strategic push to dominate the AI inference market. The cloud computing unit announced it will deploy 1 million Nvidia GPUs by the end of 2027, with deliveries beginning this year and extending through the timeline that Nvidia CEO Jensen Huang identified as representing a $1 trillion market opportunity for the company's Blackwell and Rubin chip families
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. Simultaneously, AWS revealed a collaboration with Cerebras Systems, valued at $23.1 billion, to combine AI chips in a service launching in the second half of 20261
. These moves address the voracious demand for AI computing infrastructure as inference workloads now account for roughly two-thirds of AI compute, up from about a third in 20235
.
Source: Reuters
Cerebras and AWS Deploy Divide-and-Conquer Strategy for AI Inference
The partnership between Cerebras Systems and Amazon Web Services introduces a unique approach to handling AI inference workloads. AWS will deploy Cerebras' Wafer Scale Engine chips inside its data centers, linked to Amazon's own Trainium 3 processors through custom networking technology
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. The collaboration splits inference tasks into two stages: Amazon's Trainium 3 silicon handles prefill, which transforms user prompts into tokens that AI systems understand, while Cerebras chips take over the decode stage to generate answers1
. According to Cerebras CEO Andrew Feldman, this "divide and conquer strategy" makes it "easy as a click to get on Cerebras" for AWS customers ranging from individual developers to the largest banks3
. AWS Vice President Nafea Bshara noted that while a Trainium-only service will likely remain cheaper, the combined chip offering will prove attractive "where time is money"1
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Source: SiliconANGLE
Nvidia Deal Extends Beyond GPUs to Full Infrastructure Stack
The Nvidia agreement encompasses far more than graphics processing units. Ian Buck, vice president of hyperscale and high-performance computing at Nvidia, confirmed the transaction includes Nvidia's Spectrum networking chips and Groq chips that Nvidia released following its $17 billion licensing deal with an AI chip startup late last year
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. AWS plans to use a combination of Nvidia's Groq chips alongside six others from Nvidia for more efficient AI inference. "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"2
. The deal also includes deploying Nvidia's ConnectX and Spectrum X networking gear in AWS data centers, a significant move considering AWS has spent years perfecting its own custom networking equipment4
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Source: Decrypt
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Competition Intensifies in the AI Chip Market
These partnerships underscore the fierce competition to run trained AI models at scale. The market for inference-focused chips is expected to exceed $50 billion by 2026, according to Deloitte estimates cited by industry observers
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. Cerebras has pioneered a unique approach using huge chips that can handle massive amounts of data in one go, seeking widespread adoption to challenge market leader Nvidia1
. For Cerebras, which is planning an initial public offering, having Amazon as a customer raises its profile as AWS becomes the first of the hyperscalers to commit to using Cerebras1
. AWS stated it expects its Trainium 3 and future Trainium 4 offerings "will continue to lead in price-performance versus merchant GPUs"3
.Infrastructure Control Shifts as Cloud AI Infrastructure Evolves
Industry strategists observe that these deals represent more than simple supply agreements. "Nvidia is becoming the infrastructure layer underneath the cloud providers, not just a chip vendor to them," Dermot McGrath, co-founder at ZenGen Labs, explained
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. Berna Misa, deal partner at Boardy Ventures, described the shift as an "infrastructure flip," noting that Nvidia is "embedding its full stack across compute, networking, and inference inside AWS data centers that ran proprietary gear for years"5
. Pichapen Prateepavanich, policy strategist and founder of Gather Beyond, noted that demand for inference is "driving long-term commitments" for more compute power and creating closer ties between cloud providers and chipmakers, resulting in a dynamic where cooperation and competition happen simultaneously5
. AWS can use both Nvidia and its own chips in the same systems through large-scale GPU infrastructure deployments, giving customers more flexibility than rivals that keep theirs closed5
. The collaboration between AWS and multiple AI hardware vendors signals that the infrastructure powering agentic AI systems capable of reasoning, planning, and acting autonomously across complex workflows requires diverse chip architectures working in concert5
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