According to The Information, based on documents filed with the U.S. Securities and Exchange Commission, 'And in a little-noticed disclosure, it told investors that in the long run it could generate $150 billion in revenue from software and cloud services-more than either Nvidia or AWS currently generates annually.' This suggests Nvidia could become the largest cloud company, posing a significant challenge to AWS.
To show the potential scale of the Nvidia plan, AWS had revenue of $27.5 billion in the most recent quarter, up 20% from the same quarter the year before. Operating income rose 49% to $10.4 billion... Over time, Amazon's earnings have become increasingly dependent on AWS.
Nvidia is not a large player in data center-based AI. If that changes, Amazon will have a major headache.
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