According to reports, Amazon's Amazon Web Services (AWS) under Amazon (AMZN.US) is about to reach a $0.475 billion agreement with IBM(IBM.US), which will allow IBM to use Nvidia (NVDA.US) processors through AWS cloud services to enhance its artificial intelligence (AI) application capabilities. This collaboration not only showcases AWS's global strategy in the AI field, but also further drives its continued demand for Nvidia GPUs.

Specifically, this five-year agreement will enable IBM to utilize AWS's EC2 servers equipped with Nvidia GPUs, significantly enhancing IBM's AI model training capabilities. Meanwhile, 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 AWS and IBM's cooperation in the AI field. In May of this year, IBM announced its increased usage of AWS on its Watson AI platform and plans to integrate Amazon SageMaker with its WatsonX artificial intelligence and analytics platform.

Furthermore, AWS's efforts in the field of AI chips 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 proprietary components.

However, regardless of the use of these chips, 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, growing by "three-digit percentages" year-on-year, at a growth rate three times that of AWS itself.

In addition to cooperation in the AI field, AWS maintains a rapid growth momentum. In the third quarter of 2024, AWS's revenue reached $27.45 billion, a 19% year-on-year growth. Amazon's capital expenditure this year is expected to exceed $75 billion, with more capital expenditure next year, mainly for the construction of cloud infrastructure such as GPUs, networks, and datacenters.

Meanwhile, Amazon is also trying a new model in the food industry by integrating its Whole Foods Market and Amazon Fresh stores into one delivery system to enhance its dominant position in the $1.5 trillion US food industry.

In addition, Amazon is developing smart glasses named "Amelia" aimed at helping delivery workers improve efficiency. At the same time, the company is using autonomous robots like Proteus and AI products (including shopping assistant Rufus and the Vapr system used by delivery drivers) to enhance its warehouse operations, improving delivery speed and efficiency.

Overall, the potential collaboration between AWS and IBM will not only strengthen both parties' capabilities in the field of AI, but also further drive AWS's development, showcasing Amazon's innovation and layout in multiple areas.