May 22, 2024 – Amazon Web Services (AWS), the cloud computing arm of Amazon, has clarified its position on the reported pause in ordering Nvidia’s Grace Hopper chips. In response to a query from Reuters, an AWS spokesperson stated that the company has not halted any orders from Nvidia.
The transition from Grace Hopper chips to Blackwell chips, the spokesperson explained, is specific to Project Ceiba – a supercomputer project jointly undertaken by AWS and Nvidia. The spokesperson emphasized that AWS will continue to offer other services based on Nvidia’s Hopper chips.
This clarification comes in the wake of a report by the Financial Times, which stated that Amazon AWS had suspended orders for Nvidia’s cutting-edge “superchip,” the Grace Hopper, in anticipation of the more powerful Grace Blackwell (GH200). This move has sparked concerns among investors about a possible demand slump for Nvidia products during the transition between the two chip cycles.
As previously reported, Nvidia unveiled its new generation processor, Blackwell, in March this year, barely a year after its predecessor, Hopper, began shipping to customers. According to Nvidia CEO Jensen Huang, the new product offers a twofold increase in the ability to train large language models.
The Grace Hopper was officially launched in August this year. AWS has confirmed this news to the media, stating that the short interval between the two product releases makes it reasonable to wait for the new product.
In response to this development, Nvidia has declined to comment due to the quiet period leading up to the release of its quarterly financial report on Wednesday. During Wednesday’s trading session, Nvidia’s share price rose by 0.64%, while Amazon’s share price dipped slightly by 0.21%.
