ai
Amazon Web Services raises AI cloud prices 20 percent starting in July
Amazon Web Services will increase hourly rates for EC2 Capacity Blocks for ML by about 20 percent beginning in July. The company raised the same rates 15 percent in January, citing supply and demand for memory chips.
Audio version
Tap play to generate a narrated version.
Developing·Limited corroboration so far. This page will refresh as more sources emerge.
Amazon Web Services will increase hourly rates for several types of cloud servers used for machine learning by roughly 20 percent starting in July. The company had already raised prices for the same service by about 15 percent in January. The price changes apply to EC2 Capacity Blocks for ML, a service that lets customers reserve graphics processing units in advance.
A company statement said reservation prices are updated periodically based on supply and demand.
Memory chip costs cited Soaring memory chip costs and strong demand for artificial intelligence capacity are driving the increases, according to the announcement. Similar price rises have occurred at other technology companies facing the same memory constraints.
High-bandwidth memory, a component used with advanced AI chips, remains in short supply. The shortage limits how many graphics processing units and data centers can be produced.
Industry effects The world's largest cloud provider underpins many software services and apps used by millions of developers. Price increases of 15 percent and 20 percent are expected to affect costs for companies that rely on these services in coming quarters. Memory chip makers have seen share prices rise on expectations that demand will keep the market tight for years.
