Amazon has announced an investment of US$230 million ($346 million) through Amazon Web Service (AWS) credits for artificial intelligence startups. This move reflects the ongoing efforts of cloud providers to attract AI clients from their early stages.
The allocation of credits aims to offer emerging generative AI startups access to computing power, a range of AI models, and necessary infrastructure, provided they establish their businesses on AWS.
Amazon has disclosed that it already grants US$1 billion in cloud credits annually to startups, with this fresh commitment focusing on aiding generative AI startups.
According to Matt Wood, vice president of AI Products at AWS, “They’ll have the ability to iterate swiftly and pivot as required. Ultimately, when they achieve significant success, they will have the opportunity to escalate while ensuring security, responsibility, and consistency.”
A portion of the credits will also be utilized to back 80 early-stage companies globally through the AWS Generative AI Accelerator program, as per the company’s statement.
Each startup accepted into the accelerator could potentially access up to US$1 million in AWS credits.
Cloud providers, including Microsoft Azure and Google Cloud, often offer credits to entice enterprises to utilize their services, as cloud expenses can accumulate as usage escalates.
Earlier this year, Amazon broadened its cloud credits to encompass the use of models from providers like Anthropic, Meta, Mistral AI, and Cohere, aiming to boost its AI platform’s market share.
The surge in AI demand has correspondingly amplified the usage of cloud services, fueling the rapid growth of cloud providers.
For example, AWS experienced a 17% revenue increase to US$9.42 billion in the first quarter, surpassing analyst predictions.
The capital invested by tech behemoths in AI startups has attracted regulatory scrutiny due to antitrust apprehensions.
Howard Wright, AWS’s global head of Startups overseeing startup relationships, recently departed from the company, as per sources familiar with the situation. Amazon declined to address this development.
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