Market Chatter: Amazon's AWS Engineers Face Longer Waits for CPU Servers Amid Capacity Tightening

MT Newswires Live08-07 21:44

Amazon's (AMZN) Amazon Web Services has asked engineers to reduce internal compute usage and free up server capacity as AI demand pressures CPU and GPU infrastructure, The Information reported Friday, citing unnamed people familiar with the matter.

According to the report, some AWS engineers now wait days, rather than hours, for CPU server capacity as teams have been directed to decommission idle EC2 instances and reduce compute usage amid AI-driven capacity constraints, memory chip shortages and limited data center space.

AWS told The Information it continues to meet most compute demand and said its guidance on using resources efficiently, including shutting down idle instances, remains unchanged.

Shares of the company rose more than 1% in Friday trading.

Amazon didn't immediately respond to requests for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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