I am running Ubuntu 16.04 on an EC2 p2.xlarge shared instance.

The P2.xlarge instance gives access to a single GPU (1/2 of an NVidia K80 GPU?) to my shared instance.
How is this GPU shared between other Amazon EC2 instances on the same physical machine?
I was under the impression that 100% of the GPU was allocated to my instance. But this is clearly not the case. When my instance is running nothing on the GPU:
$ nvidia-smi
Tue Feb 21 00:11:16 2017       
+-----------------------------------------------------------------------------+
| NVIDIA-SMI 375.39                 Driver Version: 375.39                    |
|-------------------------------+----------------------+----------------------+
| GPU  Name        Persistence-M| Bus-Id        Disp.A | Volatile Uncorr. ECC |
| Fan  Temp  Perf  Pwr:Usage/Cap|         Memory-Usage | GPU-Util  Compute M. |
|===============================+======================+======================|
|   0  Tesla K80           Off  | 0000:00:1E.0     Off |                    0 |
| N/A   39C    P0    55W / 149W |      0MiB / 11439MiB |     63%      Default |
+-------------------------------+----------------------+----------------------+
+-----------------------------------------------------------------------------+
| Processes:                                                       GPU Memory |
|  GPU       PID  Type  Process name                               Usage      |
|=============================================================================|
|  No running processes found                                                 |
+-----------------------------------------------------------------------------+
A moment later:
|   0  Tesla K80           Off  | 0000:00:1E.0     Off |                    0 |
| N/A   40C    P0    57W / 149W |      0MiB / 11439MiB |     97%      Default |
And the next moment:
|   0  Tesla K80           Off  | 0000:00:1E.0     Off |                    0 |
| N/A   40C    P0    56W / 149W |      0MiB / 11439MiB |    100%      Default |
And pretty much stays there...
|   0  Tesla K80           Off  | 0000:00:1E.0     Off |                    0 |
| N/A   41C    P0    56W / 149W |      0MiB / 11439MiB |    100%      Default |
|   0  Tesla K80           Off  | 0000:00:1E.0     Off |                    0 |
| N/A   41C    P0    56W / 149W |      0MiB / 11439MiB |     99%      Default |
 
    