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."…