Amazon and NVIDIA to Deliver 2 Million Additional GPUs and Next-Generation Infrastructure for Agentic and Physical AI

https://nvidianews.nvidia.com/news/aws-and-nvidia-to-deliver-2-million-additional-gpus-and-next-generation-infrastructure-for-agentic-and-physical-ai

"Building on already-rapid customer adoption of NVIDIA-accelerated compute on AWS, the companies plan to deploy 2 million additional NVIDIA GPUs across AWS’s global infrastructure and deepen their work together across AI factories, CPUs, networking, open models, data processing and robotics, delivering co-engineered AI solutions that enable customers to accelerate AI development and deployment at unprecedented scale."

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Napkin maths of additional revenue projections:

NVDA upfront revenue = $35k per GPU x 2,000,000 GPUs = $70 billion (i.e. AMZN CapEx)

AMZN long term AWS revenue = $3.50 hourly rate per GPU x 2,000,000 GPUs × 8,760 hours per year × 5 years x 70% utilisation = $215 billion

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Positions: Long AMZN and NVDA since 2021. NFA.