Amazon's retail division struggled with a shortage of AI chips, causing project delays. To address these issues, the company initiated Project Greenland, a centralized capacity pooling strategy for GPUs. This involved revised approval protocols to prioritize ROI and long-term growth. As demand for AI technology surged across the industry, GPUs became increasingly scarce, impacting even giants like OpenAI. However, forecasts indicated that availability might improve as the year progressed, showcasing Amazon's proactive response to the challenges posed by the generative AI boom.
"GPUs are too valuable to be given out on a first-come, first-served basis," one of the Amazon guidelines stated. Instead, distribution should be determined based on ROI layered with common sense considerations, and provide for the long-term growth of the Company's free cash flow.
Inside Amazon, some employees went months without securing GPUs, leading to delays that disrupted timely project launches across the company's retail division, a sector that spans its e-commerce platform and expansive logistics operations.
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