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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.

Google’s Gemini Has A Branding Problem As AI Apps Grow More Complicated

Google’s latest Gemini update highlights a broader problem in consumer AI: companies are increasingly turning internal tools and capabilities into separate products that users must learn to navigate.

In its announcement of new Gemini Live voice features, Google said users should not have to determine whether a task requires Spark, Daily Brief or a simple inbox search. Yet those are precisely the distinctions the Gemini app currently asks users to make.

Too Many Features, Too Many Names

Gemini users can switch between Chat, Spark and Daily Brief, each with its own icon and place in the app. Rather than simplifying the experience, the growing list of branded features risks making the underlying technology more visible than it needs to be.

Daily Brief illustrates the problem. Google describes it as a source of personalised, proactive updates based on information from services such as Gmail and Calendar. In practice, however, some of its suggestions can feel less like useful assistance and more like unsolicited reminders about previous searches or unfinished research.

Spark has almost the opposite problem. The feature can act as an AI agent capable of completing tasks on a user’s behalf, but packaging that capability under a separate brand forces users to understand when and where they should use it.

A simpler approach would be to let users describe what they need and allow Gemini to determine whether a standard response, an agent or another capability is appropriate.

Gemini Is Not Alone

Google’s approach reflects a wider trend across the AI industry, where companies increasingly expose the architecture of their products through separate modes and branded features.

Anthropic, for example, asks users to distinguish between Claude’s standard chat experience and Cowork. ChatGPT similarly separates Chat and Work. For consumers, these distinctions can turn what should be a simple interaction into a question about which product or mode to use.

That approach is largely driven by how AI systems are built, rather than by how people naturally think about using them.

Apple Takes A Different Approach

Apple’s strategy for Siri offers a contrasting model. Rather than requiring users to learn a new AI interface, the company is integrating AI capabilities into tools people already use, including Spotlight, Photos, the camera and voice requests.

That approach could prove more effective as AI becomes a mainstream consumer technology. Users do not necessarily need to understand which model, agent or feature is handling a request; they simply need the system to complete the task.

Text-Based AI Offers A Simpler Model

The popularity of text-based AI assistants points in the same direction. Services such as Poke, Ollie, Lindy, Orchid, Lucas, Folk, Tomo and Instinct largely reduce the interaction to a familiar interface: send a message and let the assistant determine what needs to happen next.

That simplicity removes an additional layer of decision-making. Users do not need to choose between Chat, an agent or a specialised feature before asking for help.

As a16z investment partner Justine Moore recently argued, consumers increasingly want an AI assistant to feel like a contact they can message rather than another application they must learn.

For Google and its competitors, the challenge may therefore be less about adding capabilities and more about hiding the complexity behind them. The AI that wins mainstream adoption may ultimately be the one that asks users to understand the least.

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