Amazon's Secretive 'Greenland' GPU Strategy Pays Off as AI Demand Surges

 

• Amazon’s Project Greenland helped the company secure critical GPU capacity for AI as rivals face shortages

Amazon (AMZN, Financial) put a plan in motion last year to make sure it wouldn't fall behind in the race for AI hardware—and it's starting to pay off. The initiative, known internally as “Project Greenland,” focused on locking down enough GPU power to support artificial intelligence across Amazon's massive retail business, according to a report from Business Insider.

Instead of letting teams grab GPU resources as needed, Amazon created a more structured system. Access is now based on return on investment and long-term growth goals, not just who asked first. “GPUs are too valuable to be given out on a first-come, first-served basis,” internal documents reportedly said.

While other companies are struggling to get enough GPUs, Amazon's retail division now has full access to them via Amazon Web Services. The company also plans to lean more on its in-house Trainium chips by the end of the year.

Amazon expects to spend $5.7 billion on AWS infrastructure in 2025, reinforcing its bet that AI will keep driving demand across its business. Shares were up over 3% in late morning trading Tuesday.

https://www.gurufocus.com/news/2794563/amazons-secretive-gpu-strategy-pays-off-as-ai-demand-surges