This week, the spotlight is on Nvidia as it navigates two major, interconnected developments: a multi-billion dollar supply agreement with Amazon’s cloud division and a formal antitrust inquiry initiated by the U.S. Senate. Both situations are centered on the same advanced chip technology, highlighting the growing stakes in the artificial intelligence hardware sector.
Senate Launches Antitrust Probe
A significant regulatory challenge has emerged for the chipmaker. U.S. Senators Elizabeth Warren and Richard Blumenthal have called for an investigation into Nvidia’s $20 billion deal with AI chip company Groq, which stands as the largest transaction in Nvidia’s history. The senators have demanded that CEO Jensen Huang disclose comprehensive details about the arrangement.
Their concern stems from Nvidia’s acquisition of a license for Groq’s chip designs in December, coupled with the hiring of numerous key Groq personnel, including its CEO and President. The lawmakers allege this constitutes a “reverse acqui-hire,” a structure they believe may circumvent mandatory antitrust reporting requirements. They have urged the Department of Justice and the Federal Trade Commission (FTC) to complete a review by April 3, 2026.
Nvidia has countered this characterization. A company spokesperson stated that Groq remains an independent entity, emphasizing that Nvidia only obtained a non-exclusive license and hired engineers separately. Similar deal structures have been employed in recent years by other tech giants like Amazon, Microsoft, and Google, though the FTC has indicated it will scrutinize such agreements more closely moving forward.
A Million-Chip Order from AWS
Concurrently, Nvidia has secured a monumental supply contract. The company is set to provide Amazon Web Services (AWS) with one million GPUs between 2026 and 2027. The expansive package also includes Spectrum networking chips, Groq chips, and ConnectX and Spectrum-X networking equipment for AWS data centers.
A notable aspect of the deal is AWS’s strategic shift. The cloud provider has historically relied on its own, finely-tuned networking hardware for its infrastructure. The decision to integrate Nvidia’s networking equipment marks a clear departure from that long-standing practice.
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While the full financial terms remain confidential, the one million GPUs alone are estimated to carry a price tag of at least $30 billion. The total value of the comprehensive package is likely to exceed $50 billion. For context, Nvidia’s total annual revenue for fiscal 2025 reached $215.9 billion, meaning this single agreement is equivalent to roughly a quarter of that figure.
CEO Jensen Huang is strategically promoting a multi-chip approach. The Groq technology integrated into this deal is intended for AI inference, which involves generating model responses in real-time. Huang has suggested that this combined hardware solution could generate $300 billion in annual revenue per gigawatt of power.
Robust Financial Performance Provides Backdrop
These dual narratives unfold against a backdrop of exceptional financial results. In the fourth quarter of fiscal 2026, Nvidia posted record revenue of $68.1 billion, representing a 73% increase compared to the same period the prior year. Looking ahead, the company forecasts revenue of approximately $78 billion for the first quarter of fiscal 2027.
This outlook does not yet factor in potential sales of its H200 chips in China, following the recent resumption of production tailored for the Chinese market.
Nvidia’s shares gained around two percent in a recent trading session, with the stock currently priced near 155 euros. This level remains notably below the peak reached in November. The market will be watching closely to see if regulatory headwinds can temper commercial momentum, with key dates being the Senate’s April 3, 2026 deadline and the next quarterly earnings report scheduled for May 20, 2026.
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