IBM (IBM.US) announced a partnership with AWS, investing 475 million dollars, to power the future of AI with Nvidia GPUs.

According to reports, Amazon.com, Inc. (AMZN.US) under its network service Amazon.com, Inc. (Amazon Web Services, AWS) is about to reach a $475 million agreement with IBM (IBM.US). This agreement will allow IBM to use NVIDIA Corporation's (NVDA.US) processors through AWS cloud services to enhance its artificial intelligence (AI) application capabilities. This collaboration not only highlights AWS's strategic layout in the AI field, but also further drives its continuous growth demand for Nvidia GPUs. Specifically, this five-year agreement will allow IBM to utilize AWS's EC2 servers equipped with Nvidia GPUs, significantly enhancing IBM's AI model training capabilities. In addition, IBM Research has started using AWS's machine learning platform SageMaker to train some AI models on EC2 servers. Although negotiations are still ongoing and may change due to the final agreement not being signed, this potential collaboration will undoubtedly expand the cooperation scope between AWS and IBM in the field of AI. In May of this year, IBM announced plans to increase its use of AWS on its Watson AI platform and integrate Amazon SageMaker with its WatsonX AI and analytics platform. In addition, AWS's efforts in the AI chip field are also noteworthy. While AWS has developed its own AI chips Trainium and Inferentia, and has been promoting these chips to cloud customers, it is unclear whether this collaboration with IBM involves these self-produced components. However, whether using these chips or not, such AI cloud transactions will further drive the development of AWS. AWS's AI business is expected to generate "billions of dollars" in revenue this year, with an annual growth rate in the "triple digits," three times that of AWS itself. In addition to cooperation in the AI field, AWS continues to maintain rapid growth. In the third quarter of 2024, AWS revenue reached $27.45 billion, a 19% year-on-year increase. Amazon.com, Inc.'s capital expenditure this year is expected to exceed $75 billion, with more next year, mainly for the construction of cloud infrastructure such as GPU, network, and data centers. Meanwhile, Amazon.com, Inc. is also experimenting with new models in the food industry by integrating its Whole Foods Market and Amazon.com, Inc. Fresh Store into a single delivery system to enhance its dominant position in the $1.5 trillion US food industry. In addition, Amazon.com, Inc. is developing a smart eyewear called "Amelia" to help delivery drivers improve efficiency. The company also uses autonomous Siasun Robot & Automation products like Proteus, as well as AI products (including shopping assistant Rufus and delivery driver's Vapr system) to improve its warehouse operations to enhance delivery speed and efficiency. Overall, the potential collaboration between AWS and IBM will not only strengthen the capabilities of both parties in the field of AI, but also further drive the development of AWS, showcasing Amazon.com, Inc.'s innovation and layout in multiple fields.