Amazon just made a key AI cloud service more expensive

TL;DR

Amazon Web Services (AWS) is raising prices for EC2 Capacity Blocks for ML by about 20% starting in July, after a 15% increase in January.
This AWS service allows companies to reserve GPUs in advance for AI workloads like training and fine-tuning large models.
The price hikes are attributed to high demand for GPUs and supply constraints, particularly in high-bandwidth memory, a critical component for AI chips.
These physical limitations are becoming a significant factor in the tech industry, impacting data center expansion and the supply of AI services.
Other tech companies, including Apple and Xbox, have also raised prices, citing memory chip cost increases.
Cloud providers like AWS are passing on higher infrastructure costs due to scarce GPU capacity, which gives them greater pricing power.

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