kubernetes-sigs · justinmir · Jul 22, 2026
diff --git a/config/crd/bases/infrastructure.cluster.x-k8s.io_awsmachinepools.yaml b/config/crd/bases/infrastructure.cluster.x-k8s.io_awsmachinepools.yaml
@@ -662,6 +662,40 @@ spec:
                       "None": The instance may not make use of any Capacity Reservations. This is to conserve open reservations for desired workloads
                       "CapacityReservationsOnly": The instance will only run if matched or targeted to a Capacity Reservation
                     type: string
+                  cpuOptions:
+                    description: |-
+                      CPUOptions defines CPU-related settings for the instance, including the confidential computing policy.
+                      When omitted, this means no opinion and the AWS platform is left to choose a reasonable default.
+                    minProperties: 1
+                    properties:
+                      confidentialCompute:
+                        description: |-
+                          ConfidentialCompute specifies whether confidential computing should be enabled for the instance,
+                          and, if so, which confidential computing technology to use.
+                          Valid values are: Disabled, AMDEncryptedVirtualizationNestedPaging
+                          When set to Disabled, confidential computing will be disabled for the instance.
+                          When set to AMDEncryptedVirtualizationNestedPaging, AMD SEV-SNP will be used as the confidential computing technology for the instance.
+                          In this case, ensure the following conditions are met:
+                          1) The selected instance type supports AMD SEV-SNP.
+                          2) The selected AWS region supports AMD SEV-SNP.
+                          3) The selected AMI supports AMD SEV-SNP.
+                          More details can be checked at https://docs.aws.amazon.com/AWSEC2/latest/UserGuide/sev-snp.html
+                          When omitted, this means no opinion and the AWS platform is left to choose a reasonable default,
+                          which is subject to change without notice. The current default is Disabled.
+                        enum:
+                        - Disabled
+                        - AMDEncryptedVirtualizationNestedPaging
+                        type: string
+                      nestedVirtualization:
+                        description: |-
+                          NestedVirtualization specifies whether to enable nested virtualization on the instance.
+                          Nested virtualization is supported on C8i, M8i, and R8i instance types.
+                          Valid values are: enabled, disabled
+                        enum:
+                        - enabled
+                        - disabled
+                        type: string
+                    type: object
                   enclaveOptions:
                     description: EnclaveOptions defines the options for Nitro Enclave
                       support on the instance.

diff --git a/config/crd/bases/infrastructure.cluster.x-k8s.io_awsmanagedmachinepools.yaml b/config/crd/bases/infrastructure.cluster.x-k8s.io_awsmanagedmachinepools.yaml
@@ -671,6 +671,40 @@ spec:
                       "None": The instance may not make use of any Capacity Reservations. This is to conserve open reservations for desired workloads
                       "CapacityReservationsOnly": The instance will only run if matched or targeted to a Capacity Reservation
                     type: string
+                  cpuOptions:
+                    description: |-
+                      CPUOptions defines CPU-related settings for the instance, including the confidential computing policy.
+                      When omitted, this means no opinion and the AWS platform is left to choose a reasonable default.
+                    minProperties: 1
+                    properties:
+                      confidentialCompute:
+                        description: |-
+                          ConfidentialCompute specifies whether confidential computing should be enabled for the instance,
+                          and, if so, which confidential computing technology to use.
+                          Valid values are: Disabled, AMDEncryptedVirtualizationNestedPaging
+                          When set to Disabled, confidential computing will be disabled for the instance.
+                          When set to AMDEncryptedVirtualizationNestedPaging, AMD SEV-SNP will be used as the confidential computing technology for the instance.
+                          In this case, ensure the following conditions are met:
+                          1) The selected instance type supports AMD SEV-SNP.
+                          2) The selected AWS region supports AMD SEV-SNP.
+                          3) The selected AMI supports AMD SEV-SNP.
+                          More details can be checked at https://docs.aws.amazon.com/AWSEC2/latest/UserGuide/sev-snp.html
+                          When omitted, this means no opinion and the AWS platform is left to choose a reasonable default,
+                          which is subject to change without notice. The current default is Disabled.
+                        enum:
+                        - Disabled
+                        - AMDEncryptedVirtualizationNestedPaging
+                        type: string
+                      nestedVirtualization:
+                        description: |-
+                          NestedVirtualization specifies whether to enable nested virtualization on the instance.
+                          Nested virtualization is supported on C8i, M8i, and R8i instance types.
+                          Valid values are: enabled, disabled
+                        enum:
+                        - enabled
+                        - disabled
+                        type: string
+                    type: object
                   enclaveOptions:
                     description: EnclaveOptions defines the options for Nitro Enclave
                       support on the instance.

diff --git a/exp/api/v1beta1/conversion.go b/exp/api/v1beta1/conversion.go
@@ -76,6 +76,7 @@ func (src *AWSMachinePool) ConvertTo(dstRaw conversion.Hub) error {
 	if preference := restored.Spec.AWSLaunchTemplate.CapacityReservationPreference; preference != "" {
 		dst.Spec.AWSLaunchTemplate.CapacityReservationPreference = preference
 	}
+	dst.Spec.AWSLaunchTemplate.CPUOptions = restored.Spec.AWSLaunchTemplate.CPUOptions
 
 	dst.Spec.DefaultInstanceWarmup = restored.Spec.DefaultInstanceWarmup
 	dst.Spec.AWSLaunchTemplate.NonRootVolumes = restored.Spec.AWSLaunchTemplate.NonRootVolumes
@@ -143,6 +144,8 @@ func (src *AWSManagedMachinePool) ConvertTo(dstRaw conversion.Hub) error {
 		if preference := restored.Spec.AWSLaunchTemplate.CapacityReservationPreference; preference != "" {
 			dst.Spec.AWSLaunchTemplate.CapacityReservationPreference = preference
 		}
+
+		dst.Spec.AWSLaunchTemplate.CPUOptions = restored.Spec.AWSLaunchTemplate.CPUOptions
 	}
 	if restored.Spec.AvailabilityZoneSubnetType != nil {
 		dst.Spec.AvailabilityZoneSubnetType = restored.Spec.AvailabilityZoneSubnetType

diff --git a/exp/api/v1beta1/zz_generated.conversion.go b/exp/api/v1beta1/zz_generated.conversion.go
diff --git a/exp/api/v1beta2/types.go b/exp/api/v1beta2/types.go
@@ -97,6 +97,11 @@ type AWSLaunchTemplate struct {
 	// InstanceType is the type of instance to create. Example: m4.xlarge
 	InstanceType string `json:"instanceType,omitempty"`
 
+	// CPUOptions defines CPU-related settings for the instance, including the confidential computing policy.
+	// When omitted, this means no opinion and the AWS platform is left to choose a reasonable default.
+	// +optional
+	CPUOptions infrav1.CPUOptions `json:"cpuOptions,omitempty,omitzero"`
+
 	// RootVolume encapsulates the configuration options for the root volume
 	// +optional
 	RootVolume *infrav1.Volume `json:"rootVolume,omitempty"`

diff --git a/exp/api/v1beta2/zz_generated.deepcopy.go b/exp/api/v1beta2/zz_generated.deepcopy.go
diff --git a/pkg/cloud/services/ec2/launchtemplate.go b/pkg/cloud/services/ec2/launchtemplate.go
@@ -626,6 +626,7 @@ func (s *Service) createLaunchTemplateData(scope scope.LaunchTemplateScope, imag
 
 	data := &types.RequestLaunchTemplateData{
 		InstanceType: types.InstanceType(lt.InstanceType),
+		CpuOptions:   getLaunchTemplateCPUOptionsRequest(lt.CPUOptions),
 		KeyName:      sshKeyNamePtr,
 		UserData:     ptr.To[string](base64.StdEncoding.EncodeToString(userDataForLaunchTemplate)),
 	}
@@ -712,6 +713,29 @@ func (s *Service) createLaunchTemplateData(scope scope.LaunchTemplateScope, imag
 	return data, nil
 }
 
+func getLaunchTemplateCPUOptionsRequest(cpuOptions infrav1.CPUOptions) *types.LaunchTemplateCpuOptionsRequest {
+	request := &types.LaunchTemplateCpuOptionsRequest{}
+	switch cpuOptions.ConfidentialCompute {
+	case infrav1.AWSConfidentialComputePolicySEVSNP:
+		request.AmdSevSnp = types.AmdSevSnpSpecificationEnabled
+	case infrav1.AWSConfidentialComputePolicyDisabled:
+		request.AmdSevSnp = types.AmdSevSnpSpecificationDisabled
+	}
+
+	switch cpuOptions.NestedVirtualization {
+	case infrav1.NestedVirtualizationPolicyEnabled:
+		request.NestedVirtualization = types.NestedVirtualizationSpecificationEnabled
+	case infrav1.NestedVirtualizationPolicyDisabled:
+		request.NestedVirtualization = types.NestedVirtualizationSpecificationDisabled
+	}
+
+	if *request == (types.LaunchTemplateCpuOptionsRequest{}) {
+		return nil
+	}
+
+	return request
+}
+
 func getLaunchTemplateCapacityReservationSpecification(awsLaunchTemplate *expinfrav1.AWSLaunchTemplate) *types.LaunchTemplateCapacityReservationSpecificationRequest {
 	if awsLaunchTemplate == nil {
 		return nil
@@ -916,6 +940,7 @@ func (s *Service) SDKToLaunchTemplate(d types.LaunchTemplateVersion) (*expinfrav
 			ID: v.ImageId,
 		},
 		InstanceType:      string(v.InstanceType),
+		CPUOptions:        launchTemplateCPUOptionsFromSDK(v.CpuOptions),
 		SSHKeyName:        v.KeyName,
 		SpotMarketOptions: SDKToSpotMarketOptions(v.InstanceMarketOptions),
 		VersionNumber:     d.VersionNumber,
@@ -1009,6 +1034,29 @@ func (s *Service) SDKToLaunchTemplate(d types.LaunchTemplateVersion) (*expinfrav
 	return i, decodedUserDataHash, launchTemplateUserDataSecretKey, bootstrapDataHash, nil
 }
 
+func launchTemplateCPUOptionsFromSDK(cpuOptions *types.LaunchTemplateCpuOptions) infrav1.CPUOptions {
+	if cpuOptions == nil {
+		return infrav1.CPUOptions{}
+	}
+
+	result := infrav1.CPUOptions{}
+	switch cpuOptions.AmdSevSnp {
+	case types.AmdSevSnpSpecificationEnabled:
+		result.ConfidentialCompute = infrav1.AWSConfidentialComputePolicySEVSNP
+	case types.AmdSevSnpSpecificationDisabled:
+		result.ConfidentialCompute = infrav1.AWSConfidentialComputePolicyDisabled
+	}
+
+	switch cpuOptions.NestedVirtualization {
+	case types.NestedVirtualizationSpecificationEnabled:
+		result.NestedVirtualization = infrav1.NestedVirtualizationPolicyEnabled
+	case types.NestedVirtualizationSpecificationDisabled:
+		result.NestedVirtualization = infrav1.NestedVirtualizationPolicyDisabled
+	}
+
+	return result
+}
+
 // LaunchTemplateNeedsUpdate checks if a new launch template version is needed.
 //
 // FIXME(dlipovetsky): This check should account for changed userdata, but does not yet do so.
@@ -1022,6 +1070,10 @@ func (s *Service) LaunchTemplateNeedsUpdate(scope scope.LaunchTemplateScope, inc
 		return true, services.LaunchTemplateNeedsUpdateReasonInstanceType, nil
 	}
 
+	if !cmp.Equal(incoming.CPUOptions, existing.CPUOptions) {
+		return true, services.LaunchTemplateNeedsUpdateReasonCPUOptions, nil
+	}
+
 	if !cmp.Equal(incoming.InstanceMetadataOptions, existing.InstanceMetadataOptions) {
 		return true, services.LaunchTemplateNeedsUpdateReasonInstanceMetadataOptions, nil
 	}

diff --git a/pkg/cloud/services/ec2/launchtemplate_test.go b/pkg/cloud/services/ec2/launchtemplate_test.go
@@ -369,6 +369,26 @@ func TestServiceSDKToLaunchTemplate(t *testing.T) {
 			wantDataSecretKey:     nil, // respective tag is not given
 			wantBootstrapDataHash: nil, // respective tag is not given
 		},
+		{
+			name: "CPU options",
+			input: ec2types.LaunchTemplateVersion{
+				LaunchTemplateName: aws.String("foo"),
+				LaunchTemplateData: &ec2types.ResponseLaunchTemplateData{
+					CpuOptions: &ec2types.LaunchTemplateCpuOptions{
+						AmdSevSnp:            ec2types.AmdSevSnpSpecificationEnabled,
+						NestedVirtualization: ec2types.NestedVirtualizationSpecificationEnabled,
+					},
+				},
+			},
+			wantLT: &expinfrav1.AWSLaunchTemplate{
+				Name: "foo",
+				CPUOptions: infrav1.CPUOptions{
+					ConfidentialCompute:  infrav1.AWSConfidentialComputePolicySEVSNP,
+					NestedVirtualization: infrav1.NestedVirtualizationPolicyEnabled,
+				},
+			},
+			wantUserDataHash: userdata.ComputeHash(nil),
+		},
 		{
 			name: "spot market options",
 			input: ec2types.LaunchTemplateVersion{
@@ -723,6 +743,32 @@ func TestServiceLaunchTemplateNeedsUpdate(t *testing.T) {
 			want:                  true,
 			wantNeedsUpdateReason: services.LaunchTemplateNeedsUpdateReasonInstanceType,
 		},
+		{
+			name: "Should return true if incoming CPUOptions differ from existing CPUOptions",
+			incoming: &expinfrav1.AWSLaunchTemplate{
+				CPUOptions: infrav1.CPUOptions{
+					NestedVirtualization: infrav1.NestedVirtualizationPolicyEnabled,
+				},
+			},
+			existing: &expinfrav1.AWSLaunchTemplate{
+				CPUOptions: infrav1.CPUOptions{
+					NestedVirtualization: infrav1.NestedVirtualizationPolicyDisabled,
+				},
+			},
+			want:                  true,
+			wantNeedsUpdateReason: services.LaunchTemplateNeedsUpdateReasonCPUOptions,
+		},
+		{
+			name:     "Should return true if incoming CPUOptions remove existing CPUOptions",
+			incoming: &expinfrav1.AWSLaunchTemplate{},
+			existing: &expinfrav1.AWSLaunchTemplate{
+				CPUOptions: infrav1.CPUOptions{
+					NestedVirtualization: infrav1.NestedVirtualizationPolicyEnabled,
+				},
+			},
+			want:                  true,
+			wantNeedsUpdateReason: services.LaunchTemplateNeedsUpdateReasonCPUOptions,
+		},
 		{
 			name: "new additional security group with filters",
 			incoming: &expinfrav1.AWSLaunchTemplate{
@@ -1529,12 +1575,62 @@ var LaunchTemplateVersionIgnoreUnexported = cmpopts.IgnoreUnexported(
 	ec2types.LaunchTemplateIamInstanceProfileSpecificationRequest{},
 	ec2types.LaunchTemplateSpotMarketOptionsRequest{},
 	ec2types.LaunchTemplateInstanceMarketOptionsRequest{},
+	ec2types.LaunchTemplateCpuOptionsRequest{},
 	ec2types.Tag{},
 	ec2types.LaunchTemplateTagSpecificationRequest{},
 	ec2types.RequestLaunchTemplateData{},
 	ec2.CreateLaunchTemplateVersionInput{},
 )
 
+func TestGetLaunchTemplateCPUOptionsRequest(t *testing.T) {
+	testCases := []struct {
+		name            string
+		cpuOptions      infrav1.CPUOptions
+		expectedRequest *ec2types.LaunchTemplateCpuOptionsRequest
+	}{
+		{
+			name:            "empty",
+			expectedRequest: nil,
+		},
+		{
+			name: "enabled nested virtualization",
+			cpuOptions: infrav1.CPUOptions{
+				NestedVirtualization: infrav1.NestedVirtualizationPolicyEnabled,
+			},
+			expectedRequest: &ec2types.LaunchTemplateCpuOptionsRequest{
+				NestedVirtualization: ec2types.NestedVirtualizationSpecificationEnabled,
+			},
+		},
+		{
+			name: "disabled nested virtualization",
+			cpuOptions: infrav1.CPUOptions{
+				NestedVirtualization: infrav1.NestedVirtualizationPolicyDisabled,
+			},
+			expectedRequest: &ec2types.LaunchTemplateCpuOptionsRequest{
+				NestedVirtualization: ec2types.NestedVirtualizationSpecificationDisabled,
+			},
+		},
+		{
+			name: "confidential compute and nested virtualization",
+			cpuOptions: infrav1.CPUOptions{
+				ConfidentialCompute:  infrav1.AWSConfidentialComputePolicySEVSNP,
+				NestedVirtualization: infrav1.NestedVirtualizationPolicyEnabled,
+			},
+			expectedRequest: &ec2types.LaunchTemplateCpuOptionsRequest{
+				AmdSevSnp:            ec2types.AmdSevSnpSpecificationEnabled,
+				NestedVirtualization: ec2types.NestedVirtualizationSpecificationEnabled,
+			},
+		},
+	}
+
+	for _, tc := range testCases {
+		t.Run(tc.name, func(t *testing.T) {
+			g := NewWithT(t)
+			g.Expect(getLaunchTemplateCPUOptionsRequest(tc.cpuOptions)).To(Equal(tc.expectedRequest))
+		})
+	}
+}
+
 func TestCreateLaunchTemplateVersion(t *testing.T) {
 	mockCtrl := gomock.NewController(t)
 	defer mockCtrl.Finish()
@@ -1559,8 +1655,15 @@ func TestCreateLaunchTemplateVersion(t *testing.T) {
 		marketType           ec2types.MarketType
 	}{
 		{
-			name:                 "Should successfully creates launch template version",
+			name:                 "Should successfully create launch template version with CPU options",
 			awsResourceReference: []infrav1.AWSResourceReference{{ID: aws.String("1")}},
+			mpScopeUpdater: func(mps *scope.MachinePoolScope) {
+				spec := mps.AWSMachinePool.Spec
+				spec.AWSLaunchTemplate.CPUOptions = infrav1.CPUOptions{
+					NestedVirtualization: infrav1.NestedVirtualizationPolicyEnabled,
+				}
+				mps.AWSMachinePool.Spec = spec
+			},
 			expect: func(m *mocks.MockEC2APIMockRecorder) {
 				sgMap := make(map[infrav1.SecurityGroupRole]infrav1.SecurityGroup)
 				sgMap[infrav1.SecurityGroupNode] = infrav1.SecurityGroup{ID: "1"}
@@ -1569,6 +1672,9 @@ func TestCreateLaunchTemplateVersion(t *testing.T) {
 				expectedInput := &ec2.CreateLaunchTemplateVersionInput{
 					LaunchTemplateData: &ec2types.RequestLaunchTemplateData{
 						InstanceType: ec2types.InstanceTypeT3Large,
+						CpuOptions: &ec2types.LaunchTemplateCpuOptionsRequest{
+							NestedVirtualization: ec2types.NestedVirtualizationSpecificationEnabled,
+						},
 						IamInstanceProfile: &ec2types.LaunchTemplateIamInstanceProfileSpecificationRequest{
 							Name: aws.String("instance-profile"),
 						},

diff --git a/pkg/cloud/services/interfaces.go b/pkg/cloud/services/interfaces.go
@@ -52,6 +52,8 @@ const (
 	LaunchTemplateNeedsUpdateReasonIamInstanceProfile LaunchTemplateNeedsUpdateReason = "IamInstanceProfile"
 	// LaunchTemplateNeedsUpdateReasonInstanceType means a difference in the instance type was found.
 	LaunchTemplateNeedsUpdateReasonInstanceType LaunchTemplateNeedsUpdateReason = "InstanceType"
+	// LaunchTemplateNeedsUpdateReasonCPUOptions means a difference in the CPU options was found.
+	LaunchTemplateNeedsUpdateReasonCPUOptions LaunchTemplateNeedsUpdateReason = "CPUOptions"
 	// LaunchTemplateNeedsUpdateReasonInstanceMetadataOptions means a difference in the instance metadata options was found.
 	LaunchTemplateNeedsUpdateReasonInstanceMetadataOptions LaunchTemplateNeedsUpdateReason = "InstanceMetadataOptions"
 	// LaunchTemplateNeedsUpdateReasonSpotMarketOptions means a difference in the spot market options was found.