Amazon CEO Andy Jassy Has Good News and Bad News for Nvidia Investors

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Adam Levy, The Motley Fool

Sat, May 9, 2026 astatine 5:05 PM CDT 5 min read

Few companies person benefited much from the artificial quality megatrend than Nvidia (NASDAQ: NVDA). The institution has leveraged its market-leading GPU plan capabilities to seizure a monolithic stock of the rapidly expanding AI compute market. It's built an full ecosystem astir its chips, ensuring it remains a cardinal constituent of aboriginal information halfway buildouts.

And Amazon (NASDAQ: AMZN) is 1 of its largest customers. The online retailer is besides the largest nationalist cloud computing platform, renting compute capableness to endeavor customers. It plans to walk astir $200 cardinal gathering information centers and outfitting them with chips this year, up from $131.8 cardinal past year. A ample information of that spending volition spell toward chips, including Nvidia's latest GPUs and ancillary chips.

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But it's not each bully quality for Nvidia. Amazon CEO Andy Jassy besides shared a astonishing revelation during the company's first-quarter net call.

A enactment of server racks successful a information center.

1 cardinal Nvidia GPUs coming to Amazon Web Services

First, the bully news.

During the erstwhile quarter, Amazon and Nvidia agreed to a woody that volition person Amazon instrumentality transportation of 1 cardinal Nvidia GPUs by the extremity of 2027. The woody besides includes different Nvidia chips and networking equipment.

Demand from Amazon Web Services (AWS) volition make tens of billions of dollars successful gross implicit the adjacent 2 years for Nvidia. Meanwhile, Amazon tin fastener down proviso and pricing for GPUs and unafraid the capableness its customers demand.

"We volition ever person customers who privation to tally Nvidia connected AWS," Jassy said during Amazon's first-quarter net call. Indeed, Nvidia's CUDA bundle has locked galore developers into utilizing Nvidia chips.

But AWS is making it easier for developers to usage non-Nvidia AI accelerator chips utilizing its Amazon Bedrock service, which provides a azygous API to usage aggregate instauration models connected AWS compute. Bedrock has been gaining traction with customers, Jassy says, and a bulk of each Bedrock workloads tally connected Amazon's customized AI accelerator, Trainium. And Jassy shared an update during the net telephone that investors could person missed, but it has immoderate superior implications for Nvidia shareholders.

Soaring request for much AI chips

There are increasing signs that Nvidia's stranglehold connected the AI accelerator marketplace is slipping. One of the astir caller examples is this tiny enactment Jassy slipped successful betwixt praising Nvidia: "While the largest fig of AI chips we are bringing successful are Trainium, we proceed to person a heavy concern with Nvidia."

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