Amazon triples Nvidia chip orders, adds Zoox camera supplier

Amazon's decision to triple its Nvidia GPU orders marks a significant expansion of its existing partnership with Nvidia, signaling that the company still relies heavily on third-party chips even as it develops its own silicon. This move comes as AI workload demand on AWS and internal projects rises, reinforcing the narrative that AI infrastructure is a core growth driver for the cloud business. At the same time, the separate selection of LG Innotek as a supplier for Zoox's robotaxi cameras illustrates Amazon's broader push into autonomous mobility, applying similar compute and sensing technologies beyond its traditional retail and cloud operations.

Investors are likely to focus on the capital expenditure implications, as this heavier spending on chips and data centers raises questions about long-term payback, especially if competition in AI infrastructure and autonomous systems intensifies. The article notes that this deal touches on the risk that AWS requires ongoing heavy capital spending with uncertain returns. Observers will likely watch how Amazon breaks out AI-related capex and AWS utilization in upcoming earnings updates, as well as any commentary on demand for Nvidia-based instances versus its own custom chips and early milestones for Zoox deployment.