Whether Nvidia’s moat is still there—or not—look at Amazon, not the analysts. Amazon built its own Trainium just to reduce reliance on Nvidia; yet within just five months, it added another 2 million Nvidia GPUs. Talking about replacement isn’t the real story—purchase orders are the real vote.
What happened:
Amazon and Nvidia have expanded their cooperation. AWS will add approximately 2 million Nvidia GPUs in 2027–2028, including Blackwell Ultra, Rubin, and Rubin Ultra. Five months ago, Amazon announced plans to deploy 1 million-plus units; this new increase effectively massively boosts the original plan.
The most counterintuitive part is that Amazon’s own Trainium AI chip business has already generated more than $25 billion in annualized revenue—at least in theory, it should be Nvidia’s alternative. But in reality, demand is so strong that Amazon is building competing chips while continuing to buy Nvidia at full speed. $NVDAB
What happened:
Amazon and Nvidia have expanded their cooperation. AWS will add approximately 2 million Nvidia GPUs in 2027–2028, including Blackwell Ultra, Rubin, and Rubin Ultra. Five months ago, Amazon announced plans to deploy 1 million-plus units; this new increase effectively massively boosts the original plan.
The most counterintuitive part is that Amazon’s own Trainium AI chip business has already generated more than $25 billion in annualized revenue—at least in theory, it should be Nvidia’s alternative. But in reality, demand is so strong that Amazon is building competing chips while continuing to buy Nvidia at full speed. $NVDAB