Amazon Web Services (AWS) is currently grappling with difficulties in acquiring the high-quality servers required for its AI infrastructure, as indicated by CEO Andy Jassy and CFO Brian Olsavsky during a recent earnings call. The company has conducted a "useful life study" of its hardware, resulting in a decision to cut the operational lifespan of some servers from six years to five. This change highlights supply chain challenges, including slower chip shipments from partners and shortages of essential components. Amazon's significant investment in AI infrastructure showcases the urgency of these supply constraints, as evidenced by their $26.4 billion capital expenditure in the last quarter.
AWS is struggling to acquire high-quality servers necessary for AI infrastructure, revealing supply chain issues that hinder its growth ambitions.
Amazon's CFO indicated a need to retire hardware earlier due to rapid advancements in AI technology, reducing server lifespans from six to five years.
Collection
[
|
...
]