The article discusses Nvidia’s potential advantage over Amazon’s growing demand for GPU chips by 2024. It highlights Amazon’s reliance on Nvidia’s GPUs for its cloud computing services and the challenges Amazon faces in securing enough supply. Key points include: Amazon’s cloud computing division, AWS, heavily relies on Nvidia’s GPUs for AI and machine learning workloads. Nvidia’s GPUs are essential for training large language models like ChatGPT. Amazon’s demand for GPUs is expected to surge as it aims to catch up with Microsoft and Google in AI capabilities. However, Nvidia’s limited manufacturing capacity and the global chip shortage could leave Amazon struggling to secure enough GPUs. This supply constraint gives Nvidia leverage in pricing and contract negotiations with Amazon. The article suggests that Nvidia’s dominance in AI chips positions it favorably against Amazon’s desperation for GPUs by 2024.
Source: https://www.businessinsider.com/nvidia-advantage-amazon-desperation-for-gpu-chips-2024-6