AWS is negotiating a huge deal to supply IBM with Nvidia GPUs via the cloud

Core Insights - AWS is negotiating a potential $475 million AI cloud deal with IBM to provide access to Nvidia GPUs through its cloud service [1][3][5] - Amazon's AI business is experiencing significant growth, with annual growth rates in "triple digit percentages" [1][6] - AWS reported $27.5 billion in revenue for the most recent quarter, reflecting a 19% increase year-over-year [7] AWS and IBM Partnership - The potential deal would expand the existing partnership between AWS and IBM, particularly in the AI sector [5] - IBM has already begun using AWS's EC2 servers equipped with Nvidia chips for training AI models [3][4] Demand for Nvidia GPUs - The negotiations underscore the ongoing demand for Nvidia GPUs, which are critical for AI training [6] - AWS has developed its own AI chips, Trainium and Inferentia, and is promoting these alternatives to cloud customers [6] Financial Outlook - Amazon is projected to invest over $75 billion in capital expenditures this year, primarily focused on cloud infrastructure [7] - AWS's AI business is on track to generate "multi-billion dollars" in revenue this year, growing at a faster rate than AWS's previous growth trajectory [6]