Amazon Web Services (AWS) is hiking prices for its AI and machine learning cloud service (EC2 Capacity Blocks for ML) by 20% starting in July 2026, following a 15% increase earlier this year. AWS says its Amazon EC2 Capacity Blocks for ML reservation prices are updated periodically based on supply and demand. The main reason for the price hikes is a global shortage of high-bandwidth memory (HBM), which is crucial for making powerful GPUs. As demand keeps climbing, chip makers like Micron and SK Hynix are cashing in, while costs across the industry stay high.