Amazon hikes price of key AI cloud service by 20%

Amazon hikes price of key AI cloud service by 20%

Amazon has raised the prices of one of its key artificial intelligence (AI) cloud services by a whopping 20%.

The move is likely to increase the cost of running certain AI-powered apps and services.

The price hike comes as many developers rely on Amazon Web Services (AWS) for building and delivering their AI products.

Higher infrastructure costs could be passed on to customers in the future.

AWS hikes prices of EC2 capacity blocks for ML service

AWS has announced a price increase of around 20% for its EC2 Capacity Blocks for ML service, effective July.

The service lets companies pre-book GPU capacity for their AI and machine learning workloads.

This isn't the first time AWS has raised prices this year; it had already introduced a similar hike of about 15% earlier in January.

Amazon's price hike and its implications

In its announcement, Amazon explained that "Amazon EC2 Capacity Blocks for ML reservation prices are updated periodically based on supply and demand."

The tech giant didn't elaborate further on the latest price hike.

This adjustment impacts the cloud infrastructure supporting a number of AI applications behind the scenes.

As the world's largest cloud provider, AWS is used by millions of developers to create software, AI tools, and online services.