Amazon Injects US$230 Million in Cloud Credits for AI Startups
- tech360.tv
- Jun 14, 2024
- 2 min read
Amazon invests US$230 million in cloud credits for AI startups. Startups will receive free access to computing power and AI models on AWS. AWS Generative AI Accelerator program to support 80 early-stage companies.
This move follows the trend of cloud providers vying for the attention of AI companies.
The AWS credits will give generative AI entrepreneurs free access to computing capacity, a variety of AI models, and infrastructure if they grow their businesses on the AWS platform. This investment is part of Amazon's continued commitment to aiding entrepreneurs, since the business currently provides $1 billion in cloud credits each year.
Matt Wood, Vice President of AI Products at AWS, emphasised the advantages of the credits, saying, "They'll be able to iterate very quickly and pivot very quickly as necessary. Then ultimately, when they hit on that home run, they'll be able to double down and get to the scale with security, responsibility and consistency."
A part of the credits will also be used to support 80 early-stage firms worldwide through the AWS Generative AI Accelerator programme. Each startup selected into the accelerator may receive up to $1 million in AWS credits.
Cloud providers, such as Microsoft Azure and Google Cloud, frequently give credits to persuade organisations to use their services, as the expenses of cloud usage can add up for businesses as their needs expand.
Earlier this year, Amazon increased its cloud credits to include models from Anthropic, Meta, Mistral AI, and Cohere. This strategic approach is intended to increase the market share of Amazon's AI platform.
The demand for AI has considerably expanded the use of cloud services, resulting in the rapid expansion of cloud providers. For example, AWS reported a 17% increase in sales to US$9.42 billion in the first quarter, beating analyst estimates. However, the investments made by internet behemoths in AI startups have drawn regulatory scrutiny due to antitrust issues.
In related news, AWS's global head of Startups, Howard Wright, who was in charge of managing startup ties, just left the business. Amazon declined to comment on this development.
Amazon invests US$230 million in cloud credits for AI startups
Startups will receive free access to computing power and AI models on AWS
AWS Generative AI Accelerator program to support 80 early-stage companies
Source: REUTERS
