Report ties Nvidia GeForce shortages to Amazon AI GPU rack purchases
Report: Amazon buys more Nvidia AI GPU racks than it can deploy; analyst alleges channel stuffing behind GeForce shortages.
Business Insider reported that racks of AI graphics cards are being held unused in warehouses until data centers have enough power to install them; electricity capacity, not space, is the constraint. AWS is paying large sums for Nvidia GB300 racks. An internal email cited by Business Insider said a new "Early Rack Receipt" process, under which Amazon pays for racks before installation, led to about $5 billion of server racks being paid for in August 2026. Another email indicated about $3 billion more were on order each month for the "foreseeable future." One AWS team did not have a "clear forecasted path" for installing the purchased racks, according to the report.
The report also said Amazon previously paid for racks only after they were installed in a data center. It attributed the policy change to Amazon having to "compete more for scarce resources as it jockeys with rivals for access to Nvidia GPUs and other AI components." Zitron, a technology analyst and commentator, seized on that phrase. He argued that it suggests Nvidia is requiring Amazon and other AI buyers to order large volumes of GPUs upfront, possibly more than they need, to secure allocations. He characterized the practice as "deliberate channel stuffing" and linked it to reduced supply of GeForce chips, higher gaming GPU prices and frustration for gamers.
TechRadar cautioned that the Business Insider report and Zitron's interpretation should be treated with care. It said the consumer GPU shortage is nonetheless visible. The RTX 5090 was described as effectively unobtainable except through third-party marketplace sellers at close to $10,000 in the US, or priced above £6,000 in the UK. The RTX 5080 had reached £1,400 in the UK, and Newegg in the US listed only one model sold directly by the retailer at $2,000. TechRadar also noted rumors that the RTX 5090 was being discontinued, which Nvidia has denied.
TechRadar said expectations are that conditions for RAM, SSDs and GPUs will worsen next year. It added that Nvidia's priority is clearly AI GPUs rather than GeForce cards because of the profits involved in AI, while noting that prioritization is different from the accusation of channel stuffing.