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Amazon Expands Nvidia Partnership With 2 Million More AI Chips

Amazon and Nvidia are significantly expanding their partnership, with Amazon planning to deploy another 2 million Nvidia GPUs across AWS data centres in 2027 and 2028 as demand for AI computing accelerates.

The additional chips include Nvidia’s Blackwell Ultra, Rubin and Rubin Ultra GPUs. Neither company disclosed financial terms, but the deal is likely worth tens of billions of dollars based on current GPU prices.

AI Demand Pushes AWS Expansion

Only five months ago, Amazon agreed to deploy more than 1 million Nvidia GPUs across AWS infrastructure starting in 2026. Since then, Nvidia said, demand has exceeded expectations, driven by startups, enterprises, AI labs and governments.

The companies are now expanding the relationship beyond GPUs. Nvidia’s networking technology, CPUs, data-processing software, open models and robotics platforms will also be integrated into AWS.

Amazon Continues Building Its Own Chips

The expansion comes as Amazon invests heavily in its own AI hardware. AWS has developed Trainium accelerators and Graviton CPUs to reduce its reliance on Nvidia, while Amazon has explored selling Trainium chips to other companies as an alternative for AI workloads.

Amazon’s custom-chip business has surpassed a $25 billion annualised revenue run rate, according to the company. Despite that growth, the latest Nvidia order shows that its hardware remains central to Amazon’s plans for expanding AI infrastructure.

Nvidia will also supply an unspecified number of Vera CPUs, with some integrated into Rubin systems and others operating independently. CEO Jensen Huang has described the Vera opportunity as a potential $200 billion total addressable market.

Partnership Expands Into Robotics And Enterprise AI

Amazon plans to use Nvidia’s physical AI stack across its warehouse robotics operations, including Omniverse for simulation, Cosmos for world models, Isaac for robotics development and Jetson hardware for edge AI.

For enterprise customers, AWS will offer Nvidia’s Nemotron family of open models through Amazon Bedrock and SageMaker, extending the partnership into managed AI services.

Nvidia Ramps Up Production

Nvidia’s expanded agreement with Amazon comes as the chipmaker continues to report strong demand for AI infrastructure. Second-quarter revenue reached $96.2 billion, while data-centre sales rose 117% year on year to $89 billion. Nvidia expects third-quarter revenue of $108 billion, with its next-generation Rubin products beginning to contribute.

Meanwhile, Nvidia has committed $279 billion to secure supply and manufacturing capacity for current and future data-cententre projects, up sharply from $119 billion in the previous quarter.

For investors, the key question is whether the rapid expansion of AI computing capacity will translate into equally strong and sustainable returns. Amazon’s latest commitment suggests that major technology companies are still willing to spend heavily to secure that capacity.

Cyprus Depositors Lag Behind As Mortgage Costs Rise, CBC Data Shows

Cyprus households are earning relatively modest returns on their savings even as mortgage borrowing costs climb again, according to new Central Bank of Cyprus data that places the country among the euro area’s weakest performers on deposit rates.

Deposits Rise, But Remain Near The Bottom Of The Euro Area

The central bank’s latest analysis, covering August 2026, found that the interest rate on new household deposits with agreed maturities of up to one year increased to 1.35 per cent from 1.27 per cent in July. Over the same period, the average rate on new house purchase loans rose sharply to 4.16 per cent from 3.78 per cent.

The contrast underscores a persistent imbalance in how interest rate changes are being transmitted across Cyprus’s banking system. While borrowers have felt the impact of higher rates more directly, savers continue to receive returns that remain unusually low by euro area standards.

The CBC said deposit rates in Cyprus sit at the lower end of the euro area and remain an outlier. The transmission of market interest rate changes to deposits has also been weaker in Cyprus than in almost every other euro area country, affecting both households and businesses.

Borrowing Costs Are Closer To The Euro Area Median

The picture on the lending side is more mixed. Interest rates on outstanding loans and on new lending are broadly aligned with the euro area median.

According to the CBC, the interest rate on outstanding loans to households in Cyprus was only 0.1 percentage points below the euro area median, while the corresponding rate for non-financial corporations was 0.3 percentage points above it. For new lending, the weighted average rate on loans to households for house purchase was 0.2 percentage points below the euro area median, while the rate for non-financial corporations was 0.1 percentage points lower.

Still, the latest monthly data show a notable increase in mortgage pricing in August. The average rate on house purchase loans rose to 4.16 per cent, from 3.78 per cent in July. The CBC noted that this is a weighted average across different types of housing loans, including mortgages for primary residences and holiday homes.

Because the composition of banks’ housing loan portfolios changes from month to month, weighted averages can move even when the underlying rates offered by banks have not shifted by the same amount.

Consumer Credit Rises, Business Lending Eases

Consumer borrowing also became more expensive, with the average interest rate rising to 7.12 per cent in August from 6.94 per cent in July.

For businesses, the trend was more favourable. The rate on loans of up to €1 million edged down to 4.45 per cent from 4.47 per cent, while the rate on loans above €1 million fell more sharply to 3.67 per cent from 4.29 per cent.

Even so, new lending volumes fell significantly across the board in August. Pure new lending dropped to €251.40m from €415.00m in July, while total new lending, which includes refinancing and other operations, declined to €390.10m from €686.10m.

Pure new consumer loans fell to €19.30m from €23.90m, and total lending in that category slipped to €20.70m from €26.50m. Pure new house purchase loans fell to €114.40m from €149.50m, while total lending for house purchases declined to €141.90m from €205.80m.

Business lending also slowed. Pure new loans of up to €1 million declined to €35.50m from €52.30m, while pure new lending above €1 million fell to €77.00m from €162.30m.

Why Cyprus Deposits Stay Low

The CBC’s euro area comparison is especially telling for savers. Unlike lending rates, the interest rates on existing deposits in Cyprus remain near the bottom of the euro area, which the central bank described as an outlier.

The CBC attributed this in part to the high level of excess liquidity held by Cypriot credit institutions. Cyprus’ Liquidity Coverage Ratio stood at 313 per cent in August 2026, compared with a median of 182 per cent and an EU average of 158 per cent in June 2026, the latest available figures cited by the central bank.

The relatively short maturity structure of Cyprus’s banking sector was also identified as a factor weighing on deposit rates. Rates offered on new deposits are similarly subdued and remain close to those paid on existing balances, reflecting the same underlying market conditions.

In practical terms, this means the European Central Bank’s monetary policy cycle has affected borrowing costs in Cyprus more visibly than it has improved returns for depositors. Savers have received only a limited pass-through of higher interest rates, even as borrowers have faced higher costs.

Mortgage Preferences Are Changing

The CBC also highlighted a marked shift in the type of mortgage borrowing being taken out by Cypriot households.

The share of new house purchase loans carrying a variable interest rate has fallen dramatically, from almost 100 per cent at the beginning of 2022 to just 12.0 per cent in August 2026. That is now below the euro area median.

The central bank said this may partly reflect borrowers opting for fixed-rate loans for an initial period, typically three to five years, before switching to floating rates. The shift suggests households are becoming more conscious of interest rate risk, a development banks will need to reflect in their risk management frameworks.

A similar trend is visible when household and business loans are viewed together. The share of new loans to households and non-financial corporations carrying floating rates has dropped from almost 100 per cent at the beginning of 2022 to 55.9 per cent in August 2026, below the euro area median. The CBC said this could again partly be explained by fixed-rate periods early in the life of a loan, before conversion to floating rates later on.

The Bottom Line For Savers And Borrowers

For households, the latest data point to a mixed picture. Mortgage rates remain broadly comparable with the euro area, but deposit returns remain unusually low, while the cost of new house purchase loans rose significantly in August.

The central bank’s analysis suggests that the core issue for Cypriot savers is not that lending rates are especially high by euro area standards. Rather, it is that interest rate changes have been passed through to deposits far less fully than elsewhere in the currency union.

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