AWS hikes EC2 capacity blocks for ML 20% in July
Technology
Amazon Web Services (AWS) is hiking prices for its AI and machine learning cloud service (EC2 Capacity Blocks for ML) by 20% starting in July 2026.
This follows a 15% increase earlier this year, as AWS says its Amazon EC2 Capacity Blocks for ML reservation prices are updated periodically based on supply and demand.
HBM shortage drives rising AI costs
With AWS being the go-to for many companies running AI apps, these back-to-back price hikes could make things pricier for businesses and possibly users, too.
The main reason? There's a global shortage of high-bandwidth memory (HBM), which is crucial for making powerful GPUs.
As demand keeps climbing, chip makers like Micron and SK Hynix are cashing in, while costs across the industry stay high.