Amazon Web Services announced EC2 C9g and C9gd instances powered by AWS Graviton5 processors in July 2026. The new instances deliver up to 25% better compute performance than Graviton4-based instances, with 5x larger cache and the fastest memory of any processor instances in the cloud.

AWS continues iterating on its custom silicon strategy. Graviton chips power high-volume EC2 instances, giving AWS cost advantages over Intel and AMD. That translates to margin improvement and pricing flexibility versus competitors.

Infrastructure Development

AWS CloudFormation Express mode was announced, enabling AI agents and developers to receive deployment confirmation in seconds. That’s optimized for fast iteration and agentic AI workflows where speed matters.

The updates signal AWS doubling down on infrastructure optimization—custom chips, faster tooling, AI-native features. These don’t make headlines like new services but compound into competitive advantage.

Competitive Positioning

Cloud compute is increasingly commoditized. AWS, Azure, and Google Cloud compete on price and features. Custom silicon differentiation gives AWS structural advantage. Graviton processors cost less to manufacture than licensing Intel or AMD.

Lower costs translate to price cuts or margin improvement. Both benefit AWS in market share and profitability.

AWS Graviton5 and infrastructure updates reinforcing AWS compute advantage against cloud competitors.