diff --git a/CLAUDE.md b/CLAUDE.md
index 1259a29..8a1053b 100644
--- a/CLAUDE.md
+++ b/CLAUDE.md
@@ -154,14 +154,14 @@ oa-vm pool-wait --cloud aws --timeout 45
 oa-vm pool-cleanup --cloud aws -y
 ```
 
-AWS requires `m5.metal` ($4.61/hr) for KVM/QEMU nested virtualization. First boot takes ~35 min (Windows download + install). Costs per full WAA stack test:
+AWS uses `m8i.2xlarge` (~$0.46/hr) for KVM/QEMU nested virtualization (Intel Xeon 6 families C8i/M8i/R8i support nested virt on standard instances since late 2025). First boot takes ~35 min (Windows download + install). Costs per full WAA stack test:
 
 | Phase | Time | Cost |
 |-------|------|------|
-| VM + Docker setup | ~14 min | $1.08 |
-| Docker image build | ~7 min | $0.54 |
-| Windows install + boot | ~20 min | $1.54 |
-| Benchmark runtime | varies | $4.61/hr |
+| VM + Docker setup | ~14 min | $0.11 |
+| Docker image build | ~7 min | $0.05 |
+| Windows install + boot | ~20 min | $0.15 |
+| Benchmark runtime | varies | $0.46/hr |
 
 ![Windows 11 on AWS EC2](docs/aws-waa-windows-desktop.png)
 
diff --git a/docs/ec2_setup_guide.md b/docs/ec2_setup_guide.md
index 39323b9..126ba98 100644
--- a/docs/ec2_setup_guide.md
+++ b/docs/ec2_setup_guide.md
@@ -20,7 +20,7 @@ This guide walks through deploying WAA on AWS EC2 for GUI agent evaluation. WAA
 ## Architecture overview
 
 ```
-LOCAL MACHINE (macOS/Linux)              AWS EC2 (Ubuntu 22.04, m5.metal)
+LOCAL MACHINE (macOS/Linux)              AWS EC2 (Ubuntu 22.04, m8i.2xlarge)
 +---------------------------+            +------------------------------------+
 |  oa-vm CLI                | SSH Tunnel |  Docker (waa-auto:latest)          |
 |  (pool management)        | --------→ |  +- evaluate_server (:5050)        |
@@ -33,7 +33,7 @@ LOCAL MACHINE (macOS/Linux)              AWS EC2 (Ubuntu 22.04, m5.metal)
 ```
 
 Key points:
-- **Instance type**: `m5.metal` is required (bare-metal for KVM/QEMU nested virtualization). Standard instances like `g4dn.xlarge` or `t3.xlarge` do NOT expose `/dev/kvm` and cannot run QEMU.
+- **Instance type**: `m8i.2xlarge` is recommended (~$0.46/hr). Intel Xeon 6 families (C8i, M8i, R8i) support nested virtualization on standard (non-metal) instances since late 2025. Legacy metal instances (`m5.metal` at ~$4.61/hr) also work but at ~10x the cost. Older standard instances like `t3.xlarge` do NOT expose `/dev/kvm` and cannot run QEMU.
 - **OS**: Ubuntu 22.04 LTS (Canonical official AMI, auto-discovered by the CLI)
 - **Ports**: Only SSH (22) is opened in the security group. All other access goes through SSH tunnels.
 - **First boot**: ~35 minutes (Windows 11 download + install). Subsequent resumes: ~1-5 minutes.
@@ -110,7 +110,7 @@ This performs 5 read-only checks:
 1. AWS credentials (via `sts.get_caller_identity()`)
 2. SSH public key exists at `~/.ssh/id_rsa.pub`
 3. Latest Ubuntu 22.04 AMI lookup (Canonical official)
-4. `m5.metal` instance type availability across regions
+4. `m8i.2xlarge` (or fallback) instance type availability across regions
 5. VPC infrastructure (creates VPC, subnet, security group, internet gateway if needed)
 
 For a full lifecycle test (creates and deletes a real EC2 instance, costs ~$0.01):
@@ -121,11 +121,11 @@ oa-vm smoke-test-aws --full
 
 ### 5. EC2 service quota
 
-`m5.metal` requires sufficient vCPU quota. By default, new AWS accounts have a limit of 0 for metal instances. To request an increase:
+`m8i.2xlarge` requires sufficient vCPU quota. By default, new AWS accounts may have limited quotas. To check or request an increase:
 
 1. Go to **AWS Console > Service Quotas > Amazon EC2**
 2. Search for "Running On-Demand Standard (A, C, D, H, I, M, R, T, Z) instances"
-3. Request a quota increase to at least 96 vCPUs (the `m5.metal` instance has 96 vCPUs)
+3. Request a quota increase to at least 8 vCPUs (the `m8i.2xlarge` instance has 8 vCPUs). If using `m5.metal` as a fallback, 96 vCPUs are required.
 
 ## Path 1: Automated setup with oa-vm CLI (recommended)
 
@@ -142,7 +142,7 @@ oa-vm pool-create --cloud aws --workers 3
 ```
 
 What happens behind the scenes:
-1. Finds an available `m5.metal` instance and region (tries us-east-1, us-west-2, us-east-2, eu-west-1)
+1. Finds an available instance type with nested virt support (tries m8i.2xlarge, c8i.2xlarge, r8i.2xlarge, m8i.4xlarge, m5.metal in order) and region (us-east-1, us-west-2, us-east-2, eu-west-1)
 2. Creates VPC infrastructure if needed (VPC, subnet, internet gateway, security group, key pair)
 3. Launches Ubuntu 22.04 EC2 instance with 128GB gp3 EBS root volume
 4. Waits for SSH to become available
@@ -255,10 +255,10 @@ aws ec2 authorize-security-group-ingress \
   --protocol tcp --port 22 \
   --cidr 0.0.0.0/0
 
-# Launch m5.metal instance with 128GB disk
+# Launch m8i.2xlarge instance with 128GB disk (nested virt supported)
 INSTANCE_ID=$(aws ec2 run-instances \
   --image-id $AMI_ID \
-  --instance-type m5.metal \
+  --instance-type m8i.2xlarge \
   --key-name waa-pool-key \
   --security-group-ids $SG_ID \
   --block-device-mappings '[{"DeviceName":"/dev/sda1","Ebs":{"VolumeSize":128,"VolumeType":"gp3"}}]' \
@@ -617,20 +617,22 @@ Tasks can include a `config` array with setup steps that run before the task beg
 
 | Instance type | vCPU | RAM | Cost/hr | KVM support | Notes |
 |---------------|------|-----|---------|-------------|-------|
-| `m5.metal` | 96 | 384 GB | $4.61 | Yes | Primary choice |
-| `m5n.metal` | 96 | 384 GB | $5.71 | Yes | Network-optimized fallback |
-| `c5.metal` | 96 | 192 GB | $4.08 | Yes | Compute-optimized fallback |
+| `m8i.2xlarge` | 8 | 32 GB | $0.46 | Yes | Primary choice (Intel Xeon 6, nested virt) |
+| `c8i.2xlarge` | 8 | 16 GB | $0.41 | Yes | Compute-optimized, cheapest with nested virt |
+| `r8i.2xlarge` | 8 | 64 GB | $0.60 | Yes | Memory-optimized |
+| `m8i.4xlarge` | 16 | 64 GB | $0.92 | Yes | Bigger option |
+| `m5.metal` | 96 | 384 GB | $4.61 | Yes | Legacy fallback (expensive) |
 
 ### Time and cost per phase
 
-| Phase | Time | Cost (m5.metal) |
-|-------|------|-----------------|
-| EC2 launch + SSH ready | ~2 min | $0.15 |
-| Docker + image build | ~12 min | $0.92 |
-| Windows 11 download + install (first boot) | ~20 min | $1.54 |
-| Windows boot (subsequent) | ~1-5 min | $0.08-0.38 |
-| **Total first boot** | **~35 min** | **~$2.61** |
-| Benchmark runtime | varies | $4.61/hr |
+| Phase | Time | Cost (m8i.2xlarge) |
+|-------|------|--------------------|
+| EC2 launch + SSH ready | ~2 min | $0.02 |
+| Docker + image build | ~12 min | $0.09 |
+| Windows 11 download + install (first boot) | ~20 min | $0.15 |
+| Windows boot (subsequent) | ~1-5 min | $0.01-0.04 |
+| **Total first boot** | **~35 min** | **~$0.27** |
+| Benchmark runtime | varies | $0.46/hr |
 
 ### Storage costs (when paused)
 
@@ -642,9 +644,9 @@ Paused VMs (stopped instances) do not incur compute charges, but EBS storage con
 
 ### "No available EC2 instance type/region found"
 
-`m5.metal` may not be available in all regions. The CLI tries us-east-1, us-west-2, us-east-2, eu-west-1 in order. If all fail:
+The preferred instance type (`m8i.2xlarge`) may not be available in all regions. The CLI tries multiple instance types (m8i, c8i, r8i, then m5.metal) across regions (us-east-1, us-west-2, us-east-2, eu-west-1) in order. If all fail:
 1. Check your vCPU quota: AWS Console > Service Quotas > EC2 > "Running On-Demand Standard instances"
-2. Request a quota increase to at least 96 vCPUs
+2. Request a quota increase to at least 8 vCPUs (or 96 vCPUs if falling back to m5.metal)
 3. Try a different region: `oa-vm smoke-test-aws --region eu-west-1`
 
 ### SSH connection timeout
diff --git a/docs/rl_quick_start.md b/docs/rl_quick_start.md
index 2f93cc0..3e007fd 100644
--- a/docs/rl_quick_start.md
+++ b/docs/rl_quick_start.md
@@ -184,8 +184,14 @@ Running WAA requires a VM with nested virtualisation support:
 
 | Resource | Spec | Approximate cost |
 |----------|------|-----------------|
-| Cloud VM (general purpose, 8 vCPU, 32 GB) | D8ds_v5 equivalent | ~$0.38/hr |
-| Cloud VM (bare metal, 96 vCPU) | m5.metal equivalent | ~$4.61/hr |
+| Azure VM (general purpose, 8 vCPU, 32 GB) | D8ds_v5 | ~$0.38/hr |
+| AWS VM (general purpose, 8 vCPU, 32 GB) | m8i.2xlarge | ~$0.46/hr |
+| AWS VM (compute-optimized, 8 vCPU, 16 GB) | c8i.2xlarge | ~$0.41/hr |
+| AWS VM (legacy bare metal, 96 vCPU) | m5.metal | ~$4.61/hr |
+
+Intel Xeon 6 families (C8i, M8i, R8i) support nested virtualisation on
+standard (non-metal) AWS instances since late 2025, reducing AWS costs
+by ~10x compared to legacy metal instances.
 
 A single rollout (15 steps) typically completes in 1--3 minutes depending
 on action delay and evaluator latency.  At the lower rate that is roughly
diff --git a/openadapt_evals/infrastructure/aws_vm.py b/openadapt_evals/infrastructure/aws_vm.py
index 8b0ea8e..e33fbd6 100644
--- a/openadapt_evals/infrastructure/aws_vm.py
+++ b/openadapt_evals/infrastructure/aws_vm.py
@@ -36,14 +36,17 @@
 logger = logging.getLogger(__name__)
 
 # Instance types with nested virtualization (KVM) support.
-# WAA requires QEMU/KVM, which only bare-metal instances expose on AWS.
-# m5.metal: 96 vCPU, 384GB — supports /dev/kvm for nested virtualization.
-INSTANCE_TYPE = "m5.metal"
+# WAA requires QEMU/KVM. As of late 2025, Intel Xeon 6 families (C8i, M8i, R8i)
+# support nested virtualization on standard (non-metal) instances, dramatically
+# reducing cost vs legacy metal instances.
+INSTANCE_TYPE = "m8i.2xlarge"  # 8 vCPU, 32GB, ~$0.46/hr — nested virt supported
 INSTANCE_TYPE_FALLBACKS = [
-    ("m5.metal", 4.608),
-    ("m5n.metal", 5.712),
-    ("c5.metal", 4.080),
-    ("m5a.xlarge", 0.172),  # Non-KVM fallback (won't run QEMU, for testing only)
+    ("m8i.2xlarge", 0.461),    # 8 vCPU, 32GB — best value with nested virt
+    ("c8i.2xlarge", 0.408),    # 8 vCPU, 16GB — compute-optimized, cheaper
+    ("r8i.2xlarge", 0.604),    # 8 vCPU, 64GB — memory-optimized
+    ("m8i.4xlarge", 0.922),    # 16 vCPU, 64GB — bigger option
+    ("m5.metal", 4.608),       # Legacy: 96 vCPU, 384GB — expensive but proven
+    ("m5a.xlarge", 0.172),     # Non-KVM fallback (testing only, won't run QEMU)
 ]
 
 # GPU instance types for verl-agent RL training.