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We have a test system where a VirtualBox VM snapshot is started before each major test. The snapshot contains a state of the tested system specific to the test.

This is a memory-intensive testing.

There is an idea to move the daily test run into Amazon EC2 Large instance (7.5G of RAM).

My understanding though is that EC2 is a supervisor itself. Will it allow another VM software (VirtualBox) to get started under it?

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Amazon does allow you to import VirtualBox and VMWare VMs at no additional charge beyond usage charges for Amazon EC2.

https://aws.amazon.com/ec2/vm-import/

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