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SageMaker Batch Transform will automatically split your input file into whatever payload size is specified if you use "SplitType": "Line" and "BatchStrategy": "MultiRecord". There's no need to split files yourself or to use large payload sizes unless you have very large single records.
Hope that helps!
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@Olivier_CR - i'm curious , how are you creating this batch jobs, are you doing it via console, cli or using lambda to do it via code?