Amazon is navigating a pivotal AI hardware strategy, weighing future capital expenditure on AI against AWS utilization, while balancing Nvidia-based instances with its own chip developments and setting early milestones for Zoox robotaxi deployments.

The company continues a mixed AI hardware approach, using third-party Nvidia GPUs alongside ongoing development of custom chips.

A major LG Innotek deal reinforces Amazon’s push into self-driving tech, combining AI infrastructure with autonomous vehicle capabilities through Zoox.

The broader investor spotlight centers on data centers, chips, and hardware risks and opportunities tied to AWS-driven AI demand and automation across logistics and mobility.

Amazon is expanding its AI infrastructure by tripling Nvidia GPU orders to support growing AI workloads on AWS and internal initiatives.

Analysts advise watching quarterly AI capex, AWS utilization, and progress with Zoox partnerships to assess potential margin impacts and long-term payback.

LG Innotek has been chosen to supply advanced camera modules for Zoox’s autonomous robotaxi, underscoring Amazon’s deepening role in autonomous mobility.