- A new report claims that Amazon is buying up more AI GPU racks than it can deploy in data centers
- An analyst links this report to Nvidia's GeForce GPU supply woes, theorizing that there's a connection
- The contention is that Nvidia is deliberately 'channel stuffing' or in other words, pushing an excess of AI GPUs to the detriment of gaming GPU chips
Nvidia's supply issues with its gaming GPUs are seemingly the result of a strategy to get AI giants to stock up on more graphics chips than they can handle, if fresh reports are to be believed.
You can't have failed to notice the stock issues around Nvidia's GeForce GPUs, and the spike in prices that has happened over the past few months, particularly for higher-end graphics cards.
Well, according to the musings of tech pundit and analyst Ed Zitron (via RespawnFirst) — who picked up on a report by Business Insider — the consumer GPU shortage is a direct result of Nvidia pushing AI graphics cards on the likes of Amazon.
Business Insider informs us that Amazon (or rather AWS) is buying more Nvidia GPUs than it can deploy. Apparently, racks of the AI graphics cards are being kept unused in holding warehouses until there's power available at the data centers where they'll be used (electricity capacity, not space, is the issue here).
Amazon is paying out huge sums for these GB300 racks from Nvidia, and according to an internal email that Business Insider got hold of, a new 'Early Rack Receipt' process (buying these GPUs upfront, before they're installed) saw some $5 billion worth of server racks paid for in August 2026. Seemingly $3 billion more are on order every month for the "foreseeable future" going by another email.
We're told one AWS team didn't have a "clear forecasted path" for getting the purchased racks installed — in other words, they're not even sure when these GPUs might be used.
Zitron's argument is based on a key phrase in the Business Insider report, where the author states that the reason for the switch in policy — Amazon only used to pay for racks when they were installed in a data center — is that "Amazon has to compete more for scarce resources as it jockeys with rivals for access to Nvidia GPUs and other AI components."
The conclusion Zitron draws is that this is basically indicating that Nvidia is making Amazon, and others buying up AI GPUs, compete with each other by agreeing to order a whole pile of them there and then — more than they possibly need — otherwise they won't get their allocation (presumably).
Analysis: GPU misery is clear enough to see
In short, these AI GPUs aren't actually needed as such — not by Amazon in this quantity, as per the Business Insider report — but Nvidia is effectively strong-arming the company into buying the chips, or as Zitron puts it, this is "deliberate channel stuffing." Meaning Nvidia is forcing this AI demand artificially to the seeming detriment of GeForce GPUs, with lesser chip supply for those gaming cards causing price inflation and general misery for gamers.
Obviously we need to take this with a good deal of caution — that goes for the initial report from Business Insider, and doubly so with the theorizing that Zitron applies on top of that article.
There's no denying, however, that we have witnessed a frustrating shortage of consumer GPUs, and in particular Nvidia's high-end gaming graphics cards have become painfully thin on the ground — and pricey. The RTX 5090 is either unobtainable, save through third-party marketplace sellers trying to gouge you out of the best part of 10 grand (in the US), or it's hideously expensive to the tune of over £6,000 in the UK, for example.
What's worse is the RTX 5080 is now getting ridiculously pricey too, reaching £1,400 in the UK. And in the US on Newegg, there's now only one model for sale (direct from the retailer) — and it'll set you back $2,000. It's all getting silly, frankly, and with rumors that the RTX 5090 is being discontinued doing the rounds — speculation Nvidia has denied, I should make clear — it's currently a disappointingly gloomy picture for GPUs.
The expectation is that matters are only going to get worse for RAM, SSDs, and GPUs, as next year rolls into town — and that makes all the above theorizing seem a bit more plausible. It's certainly clear that Nvidia's priority is AI GPUs rather than GeForce graphics cards because of the profits involved with AI, but of course, Team Green is a business — so what do we expect? Prioritization is one thing, though, and the levelled accusation of the practice of 'channel stuffing' is entirely another.