Amazon cracks down on ‘CPU waste’ among engineers as agentic AI crunch intensifies — CPU demand makes low-utilization EC2 instances a hot commodity [Updated]

Amazon Web Services is cracking down on internal use of EC2 instances among its engineers. In May, the company reportedly met with engineers and told them to reduce CPU waste to ensure AWS has enough CPU capacity to meet customer demand, The Information reports. The message comes as demand for CPUs in the data center has hit a fever pitch, with the traditional eight-to-one or four-to-one ratio of GPUs to CPUs moving closer to parity.

EC2 instances make up a large chunk of the modern internet, and they’re used in private deployments, as well. Traditionally, AWS engineers have been able to spin up their own instances for development, leveraging the relatively low CPU utilization required for web infrastructure to use more virtual machines. Now, engineers say they’re waiting days to get access when they previously could get access within hours. One engineer told The Information that they’ve never had to wait this long…