Amazon is making a significant investment in artificial intelligence startups by allocating $230 million in Amazon Web Services (AWS) credits. This initiative aims to attract early-stage generative AI startups by offering them free access to AWS's computing power, AI models, and infrastructure, provided they develop their companies on AWS.
This new investment is part of Amazon's broader strategy to support startups, adding to the $1 billion in cloud credits it already offers annually. The focus on generative AI startups is intended to help these companies quickly iterate and scale their operations, according to Matt Wood, Vice President of AI Products at AWS.
Additionally, part of the credits will support 80 early-stage companies globally through the AWS Generative AI Accelerator program. Each startup in the accelerator could receive up to $1 million in AWS credits, enabling them to innovate and grow rapidly.
Cloud providers, including Microsoft Azure and Google Cloud, commonly offer credits to entice enterprises to use their services, as cloud costs can become substantial as companies scale. This practice is aimed at securing long-term clients by supporting them from their nascent stages.
Earlier this year, Amazon expanded its cloud credits to include the use of AI models from providers such as Anthropic, Meta, Mistral AI, and Cohere, enhancing the appeal of its AI platform and aiming to increase its market share.
The demand for AI has driven up the usage of cloud services, contributing to the growth of cloud providers like AWS. In the first quarter of this year, AWS's revenue rose by 17% to $9.42 billion, surpassing analyst expectations. However, the investments by tech giants in AI startups have also attracted regulatory scrutiny over antitrust concerns.
In related news, Howard Wright, who managed startup relationships as the global head of Startups at AWS, recently left the company. Amazon has not commented on his departure.
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