The total AI chips market will be worth $116bn by 2030. Credit: photosince/shutterstock

Amazon has confirmed that it will continue to order NVIDIA chips, consolidating the chipmaker’s 90% next-generation chip market share. 

In a report by The Financial Times published Tuesday (21 May), Amazon stated that it had not ceased ordering chips from Nvidia and had placed orders for the chipmaker’s newer Blackwell graphics processing units (GPUs). 

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Amazon confirmed via a spokesperson that it is using the GPUs for its Project Ceiba, a supercomputer it is building in collaboration with Nvidia. 

Its spokesperson stated that Nvidia’s Blackwell GPUs offered a significant leap in compute power for Project Ceiba. 

In its 2024 thematic intelligence report into next-generation chips, research and analysis company GlobalData stated that Nvidia held a 90% market share in AI chips. 

By 2030, GlobalData forecasts the total global AI chip market to be worth over $116bn. 

Source: GlobalData

While it acknowledged that next-generation chips are not synonymous with AI chips, GlobalData identified that the deployment of next-generation chips is heavily influenced by the development of AI chip technology. 

Outside of building supercomputers, like Amazon’s Project Ceiber, GlobalData reported that there is significant opportunity for next-generation chips in verticals like consumer electronics, IoT and automotive AI. 

AI chips are expected to grow to account for 30% of the total chip market by 2030, up from just 10% in 2023. 

Amazon’s decision to continue ordering Nvidia chips also bucks the trend of Big Tech companies designing in-house chip technology. 

In April 2024 alone, Meta, Intel and Google had all announced their own chips designed specifically for AI computing workloads, all of which were reported to take aim at Nvidia’s grasp on the chip market. 

As Big Tech seeks independence from Nvidia, GlobalData warns that the chipmaker could lose its leadership despite the chip market experiencing growth.