Hours after the nominations were announced on Wednesday, September 12, Swift posted video from a lunchtime hike with her pal, during which the singer-songwriters accepted the rapper could win every category, for which he's nominated - including the ones they stand a chance of winning.
"Hey Taylor, the AMA nominations just came out. It's me, you and Drake (up for Album of the Year - Pop/Rock)," Ed said in the video.
"You're going to win," the pals said in unison before stating, "Drake's gonna win!"
In the accompanying caption, Taylor wrote: "Safe to say whoever wins the AMA for fav (favourite) pop/rock album will be an artist who writes songs about love and heartbreak YOU get to decide who it'll be."
Sheeran will also go up against Drake for Favourite Male Artist - Pop/Rock and Favourite Song - Pop/Rock, and Taylor is up for the Favourite Female Artist - Pop/Rock, facing off with Cardi B and Camila Cabello.
Drake and Cardi B lead all nominees with eight apiece. They battle each other in three categories - Video of the Year, Favourite Artist - Rap/Hip Hop, and Favourite Song - Rap/Hip Hop.
The 2018 AMAs will be staged next month.